HF 1362

4th Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:49am

A bill for an act
relating to state government; making changes to health and human services;
amending provisions related to licensing, the Minnesota family investment
program, child care, adult supports; fraud prevention, state-operated services,
the Minnesota sex offender program, the Department of Health, health care
programs, chemical and mental health; continuing care programs, and public
health; establishing the State-County Results, Accountability, and Service
Delivery Redesign; making technical changes; making forecast adjustments;
requiring reports; establishing and increasing fees; appropriating money;
amending Minnesota Statutes 2008, sections 60A.092, subdivision 2; 62D.03,
subdivision 4; 62D.05, subdivision 3; 62J.495; 62J.496; 62J.497, subdivisions
1, 2, by adding subdivisions; 62J.692, subdivision 7; 103I.208, subdivision
2; 119B.09, subdivision 7; 119B.13, subdivision 6; 119B.21, subdivisions 5,
10; 119B.231, subdivisions 2, 3, 4; 144.0724, subdivisions 2, 4, 8, by adding
subdivisions; 144.121, subdivisions 1a, 1b; 144.122; 144.1222, subdivision
1a; 144.125, subdivision 1; 144.226, subdivision 4; 144.72, subdivisions 1, 3;
144.9501, subdivisions 22b, 26a, by adding subdivisions; 144.9505, subdivisions
1g, 4; 144.9508, subdivisions 2, 3, 4; 144.9512, subdivision 2; 144.966, by
adding a subdivision; 144.97, subdivisions 2, 4, 6, by adding subdivisions;
144.98, subdivisions 1, 2, 3, by adding subdivisions; 144.99, subdivision
1; 144A.073, by adding a subdivision; 144A.44, subdivision 2; 144A.46,
subdivision 1; 145A.17, by adding a subdivision; 148.6445, by adding a
subdivision; 148D.180, subdivisions 1, 2, 3, 5; 148E.180, subdivisions 1, 2, 3, 5;
152.126, subdivisions 1, 2, 6; 153A.17; 157.15, by adding a subdivision; 157.16;
157.22; 176.011, subdivision 9; 245.462, subdivision 18; 245.470, subdivision
1; 245.4871, subdivision 27; 245.488, subdivision 1; 245A.03, by adding a
subdivision; 245A.10, subdivisions 2, 3; 245A.11, subdivision 2a, by adding
subdivisions; 245A.16, subdivisions 1, 3; 245C.03, subdivision 2; 245C.04,
subdivisions 1, 3; 245C.05, subdivision 4, by adding a subdivision; 245C.08,
subdivision 2; 245C.10, subdivision 3, by adding subdivisions; 245C.17, by
adding a subdivision; 245C.20; 245C.21, subdivision 1a; 245C.23, subdivision 2;
246.50, subdivision 5, by adding subdivisions; 246.51, by adding subdivisions;
246.511; 246.52; 246.54, subdivision 2; 246B.01, by adding subdivisions;
252.025, subdivision 7; 252.46, by adding a subdivision; 252.50, subdivision 1;
254A.02, by adding a subdivision; 254A.16, by adding a subdivision; 254B.03,
subdivisions 1, 3, by adding a subdivision; 254B.05, subdivision 1; 254B.09,
subdivision 2; 256.01, subdivision 2b, by adding subdivisions; 256.045,
subdivision 3; 256.476, subdivisions 5, 11; 256.962, subdivisions 2, 6; 256.969,
subdivisions 2b, 3a, by adding subdivisions; 256.975, subdivision 7; 256.983,
subdivision 1; 256B.04, subdivision 16; 256B.055, subdivisions 7, 12; 256B.056,
subdivisions 3c, 3d; 256B.057, by adding a subdivision; 256B.0575; 256B.0595,
subdivisions 1, 2; 256B.06, subdivisions 4, 5; 256B.0621, subdivision 2;
256B.0622, subdivision 2; 256B.0623, subdivision 5; 256B.0624, subdivisions
5, 8; 256B.0625, subdivisions 3, 3c, 6a, 7, 9, 11, 13, 13e, 13h, 17, 17a, 19a,
19c, 26, 42, 47, by adding subdivisions; 256B.0641, subdivision 3; 256B.0651;
256B.0652; 256B.0653; 256B.0654; 256B.0655, subdivisions 1b, 4; 256B.0657,
subdivisions 2, 6, 8, by adding a subdivision; 256B.08, by adding a subdivision;
256B.0911, subdivisions 1, 1a, 3, 3a, 3b, 3c, 4a, 5, 6, 7, by adding subdivisions;
256B.0913, subdivision 4; 256B.0915, subdivisions 3a, 3e, 3h, 5, by adding a
subdivision; 256B.0916, subdivision 2; 256B.0917, by adding a subdivision;
256B.092, subdivision 8a, by adding subdivisions; 256B.0943, subdivisions 1,
12; 256B.0944, by adding a subdivision; 256B.0947, subdivision 1; 256B.15,
subdivisions 1, 1a, 1h, 2, by adding subdivisions; 256B.199; 256B.37,
subdivisions 1, 5; 256B.434, subdivision 4, by adding a subdivision; 256B.437,
subdivision 6; 256B.441, subdivisions 55, 58, by adding a subdivision; 256B.49,
subdivisions 12, 13, 14, 17, by adding subdivisions; 256B.501, subdivision
4a; 256B.5011, subdivision 2; 256B.5012, by adding a subdivision; 256B.69,
subdivisions 5a, 5c, 5f, 23; 256B.76, subdivision 1; 256D.03, subdivision 4;
256D.44, subdivision 5; 256G.02, subdivision 6; 256I.03, subdivision 7; 256I.05,
subdivisions 1a, 7c; 256J.08, subdivision 73a; 256J.24, subdivision 5; 256J.425,
subdivisions 2, 3; 256J.45, subdivision 3; 256J.49, subdivisions 1, 4; 256J.521,
subdivision 2; 256J.545; 256J.561, subdivisions 2, 3; 256J.57, subdivision
1; 256J.575, subdivisions 3, 4, 6, 7; 256J.621; 256J.626, subdivision 7;
256J.95, subdivisions 3, 11, 12, 13; 256L.03, by adding a subdivision; 256L.04,
subdivisions 1, 7a, 10a, by adding a subdivision; 256L.05, subdivisions 1, 3, 3a,
by adding a subdivision; 256L.07, subdivisions 1, 2, 3, by adding a subdivision;
256L.11, subdivision 1; 256L.15, subdivisions 2, 3; 256L.17, subdivisions 3, 5;
259.67, by adding a subdivision; 270A.09, by adding a subdivision; 327.14,
by adding a subdivision; 327.15; 327.16; 327.20, subdivision 1, by adding a
subdivision; 501B.89, by adding a subdivision; 519.05; 604A.33, subdivision
1; 609.232, subdivision 11; 626.556, subdivision 3c; 626.5572, subdivisions
6, 13, 21; Laws 2003, First Special Session chapter 14, article 13C, section
2, subdivision 1, as amended; Laws 2007, chapter 147, article 19, section 3,
subdivision 4, as amended; proposing coding for new law in Minnesota Statutes,
chapters 62Q; 246B; 254B; 256; 256B; proposing coding for new law as
Minnesota Statutes, chapter 402A; repealing Minnesota Statutes 2008, sections
103I.112; 144.9501, subdivision 17b; 148D.180, subdivision 8; 245C.11,
subdivisions 1, 2; 246.51, subdivision 1; 246.53, subdivision 3; 256.962,
subdivision 7; 256B.0655, subdivisions 1, 1a, 1c, 1d, 1e, 1f, 1g, 1h, 1i, 2, 3, 5, 6,
7, 8, 9, 10, 11, 12, 13; 256B.071, subdivisions 1, 2, 3, 4; 256B.092, subdivision
5a; 256B.19, subdivision 1d; 256B.431, subdivision 23; 256I.06, subdivision
9; 256L.17, subdivision 6; 327.14, subdivisions 5, 6; Minnesota Rules, parts
4626.2015, subpart 9; 9555.6125, subpart 4, item B.

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

ARTICLE 1

LICENSING

Section 1.

Minnesota Statutes 2008, section 245A.10, subdivision 2, is amended to
read:

Subd. 2.

County fees for background studies and licensing inspections.

(a) For
purposes of family and group family child care licensing under this chapter, a county
agency may charge a fee to an applicant or license holder to recover the actual cost of
background studies, but in any case not to exceed $100 annually. A county agency may
also charge a license fee to an applicant or license holder not to exceed $50 for a one-year
license or $100 for a two-year license.

(b) A county agency may charge a fee to a legal nonlicensed child care provider or
applicant for authorization to recover the actual cost of background studies completed
under section 119B.125, but in any case not to exceed $100 annually.

(c) Counties may elect to reduce or waive the fees in paragraph (a) or (b):

(1) in cases of financial hardship;

(2) if the county has a shortage of providers in the county's area;

(3) for new providers; or

(4) for providers who have attained at least 16 hours of training before seeking
initial licensure.

(d) Counties may allow providers to pay the applicant fees in paragraph (a) or (b) on
an installment basis for up to one year. If the provider is receiving child care assistance
payments from the state, the provider may have the fees under paragraph (a) or (b)
deducted from the child care assistance payments for up to one year and the state shall
reimburse the county for the county fees collected in this manner.

(e) For purposes of adult foster care and child foster care licensing under this
chapter, a county agency may charge a fee to a corporate applicant or corporate license
holder to recover deleted text begin the actual cost of background studies. A county agency may also charge
a fee to a corporate applicant or corporate license holder to recover deleted text end the actual cost of
licensing inspections, not to exceed $500 annually.

(f) Counties may elect to reduce or waive the fees in paragraph (e) under the
following circumstances:

(1) in cases of financial hardship;

(2) if the county has a shortage of providers in the county's area; or

(3) for new providers.

Sec. 2.

Minnesota Statutes 2008, section 245A.10, subdivision 3, is amended to read:

Subd. 3.

Application fee for initial license or certification.

(a) For fees required
under subdivision 1, an applicant for an initial license or certification issued by the
commissioner shall submit a $500 application fee with each new application required
under this subdivision. The application fee shall not be prorated, is nonrefundable, and
is in lieu of the annual license or certification fee that expires on December 31. The
commissioner shall not process an application until the application fee is paid.

(b) Except as provided in clauses (1) to (3), an applicant shall apply for a license
to provide services at a specific location.

(1) For a license to provide deleted text begin waivered deleted text end new text begin residential-based habilitation new text end services to
persons with developmental disabilities deleted text begin or related conditions deleted text end new text begin under chapter 245B new text end , an
applicant shall submit an application for each county in which the deleted text begin waivered deleted text end services will
be provided. new text begin Upon licensure, the license holder may provide services to persons in that
county plus no more than three persons at any one time in each of up to ten additional
counties. A license holder in one county may not provide services under the home and
community-based waiver for persons with developmental disabilities to more than three
people in a second county without holding a separate license for that second county.
Applicants or licensees providing services under this clause to not more than three persons
remain subject to the inspection fees established in section 245A.10, subdivision 2, for
each location. The license issued by the commissioner must state the name of each
additional county where services are being provided to persons with developmental
disabilities. A license holder must notify the commissioner before making any changes
that would alter the license information listed under section 245A.04, subdivision 7,
paragraph (a), including any additional counties where persons with developmental
disabilities are being served.
new text end

(2) For a license to provide new text begin supported employment, crisis respite, or
new text end semi-independent living services to persons with developmental disabilities deleted text begin or related
conditions deleted text end new text begin under chapter 245B new text end , an applicant shall submit a single application to provide
services statewide.

(3) For a license to provide independent living assistance for youth under section
245A.22, an applicant shall submit a single application to provide services statewide.

Sec. 3.

Minnesota Statutes 2008, section 245A.11, subdivision 2a, is amended to read:

Subd. 2a.

Adult foster care license capacity.

new text begin The commissioner shall issue adult
foster care licenses with a maximum licensed capacity of four beds, including nonstaff
roomers and boarders, except that the commissioner may issue a license with a capacity of
five beds, including roomers and boarders, according to paragraphs (a) to (e).
new text end

(a) An adult foster care license holder may have a maximum license capacity of five
if all persons in care are age 55 or over and do not have a serious and persistent mental
illness or a developmental disability.

(b) The commissioner may grant variances to paragraph (a) to allow a foster care
provider with a licensed capacity of five persons to admit an individual under the age of 55
if the variance complies with section 245A.04, subdivision 9, and approval of the variance
is recommended by the county in which the licensed foster care provider is located.

(c) The commissioner may grant variances to paragraph (a) to allow the use of a fifth
bed for emergency crisis services for a person with serious and persistent mental illness
or a developmental disability, regardless of age, if the variance complies with section
245A.04, subdivision 9, and approval of the variance is recommended by the county in
which the licensed foster care provider is located.

(d) deleted text begin Notwithstanding paragraph (a), deleted text end new text begin If the 2009 legislature adopts a rate reduction
that impacts providers of adult foster care services, new text end the commissioner may issue an adult
foster care license with a capacity of five adults new text begin if the fifth bed does not increase the
overall statewide capacity of licensed adult foster care beds in homes that are not the
primary residence of the license holder, over the licensed capacity in such homes on July
1, 2009, as identified in a plan submitted to the commissioner by the county, new text end when the
capacity is recommended by the county licensing agency of the county in which the
facility is located and if the recommendation verifies that:

(1) the facility meets the physical environment requirements in the adult foster
care licensing rule;

(2) the five-bed living arrangement is specified for each resident in the resident's:

(i) individualized plan of care;

(ii) individual service plan under section 256B.092, subdivision 1b, if required; or

(iii) individual resident placement agreement under Minnesota Rules, part
9555.5105, subpart 19, if required;

(3) the license holder obtains written and signed informed consent from each
resident or resident's legal representative documenting the resident's informed choice to
living in the home and that the resident's refusal to consent would not have resulted in
service termination; and

(4) the facility was licensed for adult foster care before March 1, deleted text begin 2003 deleted text end new text begin 2009 new text end .

(e) The commissioner shall not issue a new adult foster care license under paragraph
(d) after June 30, deleted text begin 2005 deleted text end new text begin 2011 new text end . The commissioner shall allow a facility with an adult foster
care license issued under paragraph (d) before June 30, deleted text begin 2005 deleted text end new text begin 2011 new text end , to continue with a
capacity of five adults if the license holder continues to comply with the requirements in
paragraph (d).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 4.

Minnesota Statutes 2008, section 245A.11, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Alternate overnight supervision technology; adult foster care license.
new text end

new text begin (a) The commissioner may grant an applicant or license holder an adult foster care license
for a residence that does not have a caregiver in the residence during normal sleeping
hours as required under Minnesota Rules, part 9555.5105, subpart 37, item B, but uses
monitoring technology to alert the license holder when an incident occurs that may
jeopardize the health, safety, or rights of a foster care recipient. The applicant or license
holder must comply with all other requirements under Minnesota Rules, parts 9555.5105
to 9555.6265, and the requirements under this subdivision. The license printed by the
commissioner must state in bold and large font:
new text end

new text begin (1) that the facility is under electronic monitoring; and
new text end

new text begin (2) the telephone number of the county's common entry point for making reports of
suspected maltreatment of vulnerable adults under section 626.557, subdivision 9.
new text end

new text begin (b) Applications for a license under this section must be submitted directly to
the Department of Human Services licensing division. The licensing division must
immediately notify the host county and lead county contract agency and the host county
licensing agency. The licensing division must collaborate with the county licensing
agency in the review of the application and the licensing of the program.
new text end

new text begin (c) Before a license is issued by the commissioner, and for the duration of the
license, the applicant or license holder must establish, maintain, and document the
implementation of written policies and procedures addressing the requirements in
paragraphs (d) through (f).
new text end

new text begin (d) The applicant or license holder must have policies and procedures that:
new text end

new text begin (1) establish characteristics of target populations that will be admitted into the home,
and characteristics of populations that will not be accepted into the home;
new text end

new text begin (2) explain the discharge process when a foster care recipient requires overnight
supervision or other services that cannot be provided by the license holder due to the
limited hours that the license holder is on-site;
new text end

new text begin (3) describe the types of events to which the program will respond with a physical
presence when those events occur in the home during time when staff are not on-site, and
how the license holder's response plan meets the requirements in paragraph (e), clause
(1) or (2);
new text end

new text begin (4) establish a process for documenting a review of the implementation and
effectiveness of the response protocol for the response required under paragraph (e),
clause (1) or (2). The documentation must include:
new text end

new text begin (i) a description of the triggering incident;
new text end

new text begin (ii) the date and time of the triggering incident;
new text end

new text begin (iii) the time of the response or responses under paragraph (e), clause (1) or (2);
new text end

new text begin (iv) whether the response met the resident's needs;
new text end

new text begin (v) whether the existing policies and response protocols were followed; and
new text end

new text begin (vi) whether the existing policies and protocols are adequate or need modification.
new text end

new text begin When no physical presence response is completed for a three-month period, the
license holder's written policies and procedures must require a physical presence response
drill be to conducted for which the effectiveness of the response protocol under paragraph
(e), clause (1) or (2), will be reviewed and documented as required under this clause; and
new text end

new text begin (5) establish that emergency and nonemergency phone numbers are posted in a
prominent location in a common area of the home where they can be easily observed by a
person responding to an incident who is not otherwise affiliated with the home.
new text end

new text begin (e) The license holder must document and include in the license application which
response alternative under clause (1) or (2) is in place for responding to situations that
present a serious risk to the health, safety, or rights of people receiving foster care services
in the home:
new text end

new text begin (1) response alternative (1) requires only the technology to provide an electronic
notification or alert to the license holder that an event is underway that requires a response.
Under this alternative, no more than ten minutes will pass before the license holder will be
physically present on-site to respond to the situation; or
new text end

new text begin (2) response alternative (2) requires the electronic notification and alert system
under alternative (1), but more than ten minutes may pass before the license holder is
present on-site to respond to the situation. Under alternative (2), all of the following
conditions are met:
new text end

new text begin (i) the license holder has a written description of the interactive technological
applications that will assist the licenser holder in communicating with and assessing the
needs related to care, health, and safety of the foster care recipients. This interactive
technology must permit the license holder to remotely assess the well being of the foster
care recipient without requiring the initiation of the foster care recipient. Requiring the
foster care recipient to initiate a telephone call does not meet this requirement;
new text end

new text begin (ii) the license holder documents how the remote license holder is qualified and
capable of meeting the needs of the foster care recipients and assessing foster care
recipients' needs under item (i) during the absence of the license holder on-site;
new text end

new text begin (iii) the license holder maintains written procedures to dispatch emergency response
personnel to the site in the event of an identified emergency; and
new text end

new text begin (iv) each foster care recipient's individualized plan of care, individual service plan
under section 256B.092, subdivision 1b, if required, or individual resident placement
agreement under Minnesota Rules, part 9555.5105, subpart 19, if required, identifies the
maximum response time, which may be greater than ten minutes, for the license holder
to be on-site for that foster care recipient.
new text end

new text begin (f) All placement agreements, individual service agreements, and plans applicable
to the foster care recipient must clearly state that the adult foster care license category is
a program without the presence of a caregiver in the residence during normal sleeping
hours; the protocols in place for responding to situations that present a serious risk to
health, safety, or rights of foster care recipients under paragraph (e), clause (1) or (2); and a
signed informed consent from each foster care recipient or the person's legal representative
documenting the person's or legal representative's agreement with placement in the
program. If electronic monitoring technology is used in the home, the informed consent
form must also explain the following:
new text end

new text begin (1) how any electronic monitoring is incorporated into the alternative supervision
system;
new text end

new text begin (2) the backup system for any electronic monitoring in times of electrical outages or
other equipment malfunctions;
new text end

new text begin (3) how the license holder is trained on the use of the technology;
new text end

new text begin (4) the event types and license holder response times established under paragraph (e);
new text end

new text begin (5) how the license holder protects the foster care recipient's privacy related to
electronic monitoring and related to any electronically recorded data generated by the
monitoring system. A foster care recipient may not be removed from a program under
this subdivision for failure to consent to electronic monitoring. The consent form must
explain where and how the electronically recorded data is stored, with whom it will be
shared, and how long it is retained; and
new text end

new text begin (6) the risks and benefits of the alternative overnight supervision system.
new text end

new text begin The written explanations under clauses (1) to (6) may be accomplished through
cross-references to other policies and procedures as long as they are explained to the
person giving consent, and the person giving consent is offered a copy.
new text end

new text begin (g) Nothing in this section requires the applicant or license holder to develop or
maintain separate or duplicative polices, procedures, documentation, consent forms, or
individual plans that may be required for other licensing standards, if the requirements of
this section are incorporated into those documents.
new text end

new text begin (h) The commissioner may grant variances to the requirements of this section
according to section 245A.04, subdivision 9.
new text end

new text begin (i) For the purposes of paragraphs (d) through (h), license holder has the meaning
under section 245A.2, subdivision 9, and additionally includes all staff, volunteers, and
contractors affiliated with the license holder.
new text end

new text begin (j) For the purposes of paragraph (e), the terms "assess" and "assessing" mean to
remotely determine what action the license holder needs to take to protect the well-being
of the foster care recipient.
new text end

Sec. 5.

Minnesota Statutes 2008, section 245A.11, is amended by adding a subdivision
to read:

new text begin Subd. 8b. new text end

new text begin Adult foster care data privacy and security. new text end

new text begin (a) An adult foster
care license holder who creates, collects, records, maintains, stores, or discloses any
individually identifiable recipient data, whether in an electronic or any other format,
must comply with the privacy and security provisions of applicable privacy laws and
regulations, including:
new text end

new text begin (1) the federal Health Insurance Portability and Accountability Act of 1996
(HIPAA), Public Law 104-1; and the HIPAA Privacy Rule, Code of Federal Regulations,
title 45, part 160, and subparts A and E of part 164; and
new text end

new text begin (2) the Minnesota Government Data Practices Act as codified in chapter 13.
new text end

new text begin (b) For purposes of licensure, the license holder shall be monitored for compliance
with the following data privacy and security provisions:
new text end

new text begin (1) the license holder must control access to data on foster care recipients according
to the definitions of public and private data on individuals under section 13.02;
classification of the data on individuals as private under section 13.46, subdivision 2;
and control over the collection, storage, use, access, protection, and contracting related
to data according to section 13.05, in which the license holder is assigned the duties
of a government entity;
new text end

new text begin (2) the license holder must provide each foster care recipient with a notice that
meets the requirements under section 13.04, in which the license holder is assigned the
duties of the government entity, and that meets the requirements of Code of Federal
Regulations, title 45, part 164.52. The notice shall describe the purpose for collection of
the data, and to whom and why it may be disclosed pursuant to law. The notice must
inform the recipient that the license holder uses electronic monitoring and, if applicable,
that recording technology is used;
new text end

new text begin (3) the license holder must not install monitoring cameras in bathrooms;
new text end

new text begin (4) electronic monitoring cameras must not be concealed from the foster care
recipients; and
new text end

new text begin (5) electronic video and audio recordings of foster care recipients shall not be stored
by the license holder for more than five days.
new text end

new text begin (c) The commissioner shall develop, and make available to license holders and
county licensing workers, a checklist of the data privacy provisions to be monitored
for purposes of licensure.
new text end

Sec. 6.

Minnesota Statutes 2008, section 245A.16, subdivision 1, is amended to read:

Subdivision 1.

Delegation of authority to agencies.

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

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

(2) adult foster care maximum capacity;

(3) adult foster care minimum age requirement;

(4) child foster care maximum age requirement;

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

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

(b) County agencies must report information about disqualification reconsiderations
under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances
granted under paragraph (a), clause (5), to the commissioner at least monthly in a format
prescribed by the commissioner.

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

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

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

Sec. 7.

Minnesota Statutes 2008, section 245A.16, subdivision 3, is amended to read:

Subd. 3.

Recommendations to commissioner.

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

Sec. 8.

Minnesota Statutes 2008, section 245C.04, subdivision 1, is amended to read:

Subdivision 1.

Licensed programs.

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

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

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

(1) registered under chapter 144D; or

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

(3) the following conditions are met:

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

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

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

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

(e) The commissioner of human services shall conduct a background study of an
individual specified under section 245C.03, subdivision 1, paragraph (a), clauses (2)
to (6), who is newly affiliated with a child foster care license holder. The county or
private agency shall collect and forward to the commissioner the information required
under section 245C.05, subdivisions 1 and 5. The background study conducted by the
commissioner of human services under this paragraph must include a review of the
information required under section 245C.08, subdivisions 1, 3, and 4.

(f) new text begin From January 1, 2010, to December 31, 2012, unless otherwise specified in
paragraph (c), the commissioner shall conduct a study of an individual required to be
studied under section 245C.03 at the time of reapplication for an adult foster care or family
adult day services license: (1) the county shall collect and forward to the commissioner
the information required under section 245C.05, subdivision 1, paragraphs (a) and (b),
and subdivision 5, paragraphs (a) and (b), for background studies conducted by the
commissioner for adult foster care and family adult day services when the license holder
resides in the adult foster care or family adult day services residence; (2) the license
holder shall collect and forward to the commissioner the information required under
section 245C.05, subdivisions 1, paragraphs (a) and (b); and 5, paragraphs (a) and (b),
for background studies conducted by the commissioner for adult foster care when the
license holder does not reside in the adult foster care residence; and (3) the background
study conducted by the commissioner under this paragraph must include a review of the
information required under section 245C.08, subdivision 1, paragraph (a), clauses (1)
to (5), and subdivisions 3 and 4.
new text end

new text begin (g) The commissioner shall conduct a background study of an individual specified
under section 245C.03, subdivision 1, paragraph (a), clauses (2) to (6), who is newly
affiliated with an adult foster care or family adult day services license holder: (1) the
county shall collect and forward to the commissioner the information required under
section 245C.05, subdivision 1, paragraphs (a) and (b), and subdivision 5, paragraphs (a)
and (b), for background studies conducted by the commissioner for adult foster care
and family adult day services when the license holder resides in the adult foster care or
family adult day services residence; (2) the license holder shall collect and forward to the
commissioner the information required under section 245C.05, subdivisions 1, paragraphs
(a) and (b); and 5, paragraphs (a) and (b), for background studies conducted by the
commissioner for adult foster care when the license holder does not reside in the adult
foster care residence; and (3) the background study conducted by the commissioner under
this paragraph must include a review of the information required under section 245C.08,
subdivision 1, paragraph (a), and subdivisions 3 and 4.
new text end

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

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

Sec. 9.

Minnesota Statutes 2008, section 245C.05, is amended by adding a subdivision
to read:

new text begin Subd. 2b. new text end

new text begin County agency to collect and forward information to the
commissioner. new text end

new text begin For background studies related to adult foster care and family adult
day services when the license holder resides in the adult foster care or family adult
day services residence, the county agency must collect the information required under
subdivision 1 and forward it to the commissioner.
new text end

Sec. 10.

Minnesota Statutes 2008, section 245C.05, subdivision 4, is amended to read:

Subd. 4.

Electronic transmission.

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

(1) background study information to the commissioner;

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

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

new text begin (4) background study results to county agencies for background studies conducted
by the commissioner for adult foster care and family adult day services new text end .

Sec. 11.

Minnesota Statutes 2008, section 245C.08, subdivision 2, is amended to read:

Subd. 2.

Background studies conducted by a county agency.

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

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

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

(3) information from the Bureau of Criminal Apprehension.

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

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

Sec. 12.

Minnesota Statutes 2008, section 245C.10, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Adult foster care services. new text end

new text begin The commissioner shall recover the cost of
background studies required under section 245C.03, subdivision 1, for the purposes of
adult foster care and family adult day services licensing, through a fee of no more than
$20 per study charged to the license holder. The fees collected under this subdivision are
appropriated to the commissioner for the purpose of conducting background studies.
new text end

Sec. 13.

Minnesota Statutes 2008, section 245C.10, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Private agencies. new text end

new text begin The commissioner shall recover the cost of conducting
background studies under section 245C.33 for studies initiated by private agencies for the
purpose of adoption through a fee of no more than $70 per study charged to the private
agency. The fees collected under this subdivision are appropriated to the commissioner for
the purpose of conducting background studies.
new text end

Sec. 14.

Minnesota Statutes 2008, section 245C.17, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Notice to county agency. new text end

new text begin For studies on individuals related to a license
to provide adult foster care and family adult day services, the commissioner shall also
provide a notice of the background study results to the county agency that initiated the
background study.
new text end

Sec. 15.

Minnesota Statutes 2008, section 245C.20, is amended to read:

245C.20 LICENSE HOLDER RECORD KEEPING.

A licensed program shall document the date the program initiates a background
study under this chapter in the program's personnel files. When a background study is
completed under this chapter, a licensed program shall maintain a notice that the study
was undertaken and completed in the program's personnel files. new text begin Except when background
studies are initiated through the commissioner's online system, new text end if a licensed program
has not received a response from the commissioner under section 245C.17 within 45
days of initiation of the background study request, the licensed program must contact the
deleted text begin commissioner deleted text end new text begin human services licensing division new text end to inquire about the status of the study. new text begin If
a license holder initiates a background study under the commissioner's online system, but
the background study subject's name does not appear in the list of active or recent studies
initiated by that license holder, the license holder must either contact the human services
licensing division or resubmit the background study information online for that individual.
new text end

Sec. 16.

Minnesota Statutes 2008, section 245C.21, subdivision 1a, is amended to read:

Subd. 1a.

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

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

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

new text begin (c) new text end A reconsideration request shall be submitted within 30 days of the individual's
receipt of the disqualification notice or the time frames specified in subdivision 2,
whichever time frame is shorter.

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

Sec. 17.

Minnesota Statutes 2008, section 245C.23, subdivision 2, is amended to read:

Subd. 2.

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

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

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

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

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

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

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

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

new text begin (d) For background studies related to adult foster care and family adult day services,
the commissioner shall also notify the county that initiated the study of the results of
the reconsideration.
new text end

Sec. 18.

Minnesota Statutes 2008, section 256B.092, is amended by adding a
subdivision to read:

new text begin Subd. 5b. new text end

new text begin Revised per diem based on legislated rate reduction. new text end

new text begin Notwithstanding
section 252.28, subdivision 3, paragraph (d), if the 2009 legislature adopts a rate reduction
that impacts payment to providers of adult foster care services, the commissioner may
issue adult foster care licenses that permit a capacity of five adults. The application for a
five-bed license must meet the requirements of section 245A.11, subdivision 2a. Prior to
admission of the fifth recipient of adult foster care services, the county must negotiate a
revised per diem rate for room and board and waiver services that reflects the legislated
rate reduction and results in an overall average per diem reduction for all foster care
recipients in that home. The revised per diem must allow the provider to maintain, as
much as possible, the level of services or enhanced services provided in the residence,
while mitigating the losses of the legislated rate reduction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 19.

Minnesota Statutes 2008, section 256B.49, subdivision 17, is amended to read:

Subd. 17.

Cost of services and supports.

(a) The commissioner shall ensure
that the average per capita expenditures estimated in any fiscal year for home and
community-based waiver recipients does not exceed the average per capita expenditures
that would have been made to provide institutional services for recipients in the absence
of the waiver.

(b) The commissioner shall implement on January 1, 2002, one or more aggregate,
need-based methods for allocating to local agencies the home and community-based
waivered service resources available to support recipients with disabilities in need of
the level of care provided in a nursing facility or a hospital. The commissioner shall
allocate resources to single counties and county partnerships in a manner that reflects
consideration of:

(1) an incentive-based payment process for achieving outcomes;

(2) the need for a state-level risk pool;

(3) the need for retention of management responsibility at the state agency level; and

(4) a phase-in strategy as appropriate.

(c) Until the allocation methods described in paragraph (b) are implemented, the
annual allowable reimbursement level of home and community-based waiver services
shall be the greater of:

(1) the statewide average payment amount which the recipient is assigned under the
waiver reimbursement system in place on June 30, 2001, modified by the percentage of
any provider rate increase appropriated for home and community-based services; or

(2) an amount approved by the commissioner based on the recipient's extraordinary
needs that cannot be met within the current allowable reimbursement level. The
increased reimbursement level must be necessary to allow the recipient to be discharged
from an institution or to prevent imminent placement in an institution. The additional
reimbursement may be used to secure environmental modifications; assistive technology
and equipment; and increased costs for supervision, training, and support services
necessary to address the recipient's extraordinary needs. The commissioner may approve
an increased reimbursement level for up to one year of the recipient's relocation from an
institution or up to six months of a determination that a current waiver recipient is at
imminent risk of being placed in an institution.

(d) Beginning July 1, 2001, medically necessary private duty nursing services will be
authorized under this section as complex and regular care according to sections 256B.0651
and 256B.0653 to 256B.0656. The rate established by the commissioner for registered
nurse or licensed practical nurse services under any home and community-based waiver as
of January 1, 2001, shall not be reduced.

new text begin (e) Notwithstanding section 252.28, subdivision 3, paragraph (d), if the 2009
legislature adopts a rate reduction that impacts payment to providers of adult foster care
services, the commissioner may issue adult foster care licenses that permit a capacity of
five adults. The application for a five-bed license must meet the requirements of section
245A.11, subdivision 2a. Prior to admission of the fifth recipient of adult foster care
services, the county must negotiate a revised per diem rate for room and board and waiver
services that reflects the legislated rate reduction and results in an overall average per
diem reduction for all foster care recipients in that home. The revised per diem must allow
the provider to maintain, as much as possible, the level of services or enhanced services
provided in the residence, while mitigating the losses of the legislated rate reduction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 20. new text begin WAIVER.
new text end

new text begin By December 1, 2009, the commissioner shall request all federal approvals and
waiver amendments to the disability home and community-based waivers to allow properly
licensed adult foster care homes to provide residential services for up to five individuals.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009.
new text end

Sec. 21. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2008, section 245C.11, subdivisions 1 and 2, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2008, section 256B.092, subdivision 5a, new text end new text begin is repealed effective
July 1, 2009.
new text end

new text begin (c) new text end new text begin Minnesota Rules, part 9555.6125, subpart 4, item B, new text end new text begin is repealed.
new text end

ARTICLE 2

MFIP/CHILD CARE/ADULT SUPPORTS/FRAUD PREVENTION

Section 1.

Minnesota Statutes 2008, section 119B.09, subdivision 7, is amended to read:

Subd. 7.

Date of eligibility for assistance.

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 119B.13, subdivision 6, is amended to read:

Subd. 6.

Provider payments.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2009.
new text end

Sec. 3.

Minnesota Statutes 2008, section 119B.21, subdivision 5, is amended to read:

Subd. 5.

Child care services grants.

(a) A child care resource and referral program
designated under section 119B.19, subdivision 1a, may award child care services grants
for:

(1) creating new licensed child care facilities and expanding existing facilities,
including, but not limited to, supplies, equipment, facility renovation, and remodeling;

(2) improving licensed child care facility programs;

(3) staff training and development services including, but not limited to, in-service
training, curriculum development, accreditation, certification, consulting, resource
centers, program and resource materials, supporting effective teacher-child interactions,
child-focused teaching, and content-driven classroom instruction;

(4) interim financing;

(5) capacity building through the purchase of appropriate technology to create,
enhance, and maintain business management systems;

(6) emergency assistance for child care programs;

(7) new programs or projects for the creation, expansion, or improvement of
programs that serve ethnic immigrant and refugee communities; and

(8) targeted recruitment initiatives to expand and build the capacity of the child
care system and to improve the quality of care provided by legal nonlicensed child care
providers.

(b) A child care resource and referral program designated under section 119B.19,
subdivision 1a, may award child care services grants to:

(1) licensed providers;

(2) providers in the process of being licensed;

(3) corporations or public agencies that develop or provide child care services;

(4) school-age care programs;

(5) legal nonlicensed or family, friend, and neighbor care providers; or

(6) any combination of clauses (1) to (5).

(c) A recipient of a child care services grant for facility improvements, interim
financing, or staff training and development must provide a 25 percent local match.

new text begin (d) Beginning July 1, 2009, grants under this subdivision shall be increasingly
awarded for activities that improve provider quality, including activities under paragraph
(a), clauses (1) to (3) and (7).
new text end

Sec. 4.

Minnesota Statutes 2008, section 119B.21, subdivision 10, is amended to read:

Subd. 10.

Family child care technical assistance grants.

(a) A child care resource
and referral organization designated under section 119B.19, subdivision 1a, may award
technical assistance grants of up to $1,000. These grants may be used for:

(1) facility improvements, including, but not limited to, improvements to meet
licensing requirements;

(2) improvements to expand a child care facility or program;

(3) toys new text begin , materials, new text end and equipment new text begin to improve the learning environment new text end ;

(4) technology and software to create, enhance, and maintain business management
systems;

(5) start-up costs;

(6) staff training and development; and

(7) other uses approved by the commissioner.

(b) A child care resource and referral program may award family child care technical
assistance grants to:

(1) licensed family child care providers;

(2) child care providers in the process of becoming licensed; or

(3) legal nonlicensed or family, friend, and neighbor care providers.

(c) A local match is not required for a family child care technical assistance grant.

new text begin (d) Beginning July 1, 2009, grants under this subdivision shall be increasingly
awarded for activities that improve provider quality, including activities under paragraph
(a), clauses (1), (3), and (6).
new text end

Sec. 5.

Minnesota Statutes 2008, section 119B.231, subdivision 2, is amended to read:

Subd. 2.

Provider eligibility.

(a) To be considered for an SRSA, a provider shall
apply to the commissioner new text begin or have been chosen as an SRSA provider prior to June 30,
2009, and have complied with all requirements of the SRSA agreement. Priority for funds
is given to providers who had agreements prior to June 30, 2009. If sufficient funds are
available, the commissioner shall make applications available to additional providers new text end . To
be eligible to apply for an SRSA, a provider shall:

(1) be eligible for child care assistance payments under chapter 119B;

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

(3) provide full-time, full-year child care services; and

(4) deleted text begin serve at least one child who is subsidized through the child care assistance
program and who is expected to enter kindergarten within the following 30 months deleted text end new text begin have
obtained a level 3 or 4 star rating under the voluntary Parent Aware quality rating system new text end .

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

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

(1) the deleted text begin qualifications of the provider and the provider's staff deleted text end new text begin provider's Parent
Aware rating score new text end ;

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

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

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

deleted text begin (5) deleted text end new text begin (2) new text end the provider's current or planned social service and employment linkages;

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

deleted text begin (7) deleted text end new text begin (3) new text end the geographic distribution needed for SRSA providers;

deleted text begin (8) deleted text end new text begin (4) new text end the inclusion of a variety of child care delivery models; and

deleted text begin (9) deleted text end new text begin (5) new text end other related factors determined by the commissioner.

Sec. 6.

Minnesota Statutes 2008, section 119B.231, subdivision 3, is amended to read:

Subd. 3.

Family and child eligibility.

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

(1) be eligible to receive child care assistance under any provision in chapter 119B
except section 119B.035;

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

(3) include a child who has not yet entered kindergarten.

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

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

(2) the family has a child who has not yet entered kindergarten; and

(3) the family maintains eligibility under chapter 119B except section 119B.035.

(c) deleted text begin For the 12 months deleted text end After initial eligibility has been determined, a decrease in the
family's authorized activities to an average of less than 35 hours per week does not result
in ineligibility for the SRSA rate. new text begin A family must continue to maintain eligibility under this
chapter and be in an authorized activity.
new text end

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

Sec. 7.

Minnesota Statutes 2008, section 119B.231, subdivision 4, is amended to read:

Subd. 4.

Requirements of providers.

An SRSA must include assessment,
evaluation, and reporting requirements that promote the goals of improved school
readiness and movement toward appropriate child development milestones. A provider
who enters into an SRSA shall comply with new text begin all SRSA requirements, including new text end the
assessment, evaluation, and reporting requirements in the SRSA. new text begin Providers who have been
selected previously for SRSAs must begin the process to obtain a rating using Parent
Aware according to timelines established by the commissioner. If the initial Parent Aware
rating is less than three stars, the provider must submit a plan to improve the rating. If
a 3 or 4 star rating is not obtained within established timelines, the commissioner may
consider continuation of the agreement, depending upon the progress made and other
factors. Providers who apply and are selected for a new SRSA agreement on or after July
1, 2009, must have a level 3 or 4 star rating under the voluntary Parent Aware quality
rating system at the time the SRSA agreement is signed.
new text end

Sec. 8.

Minnesota Statutes 2008, section 145A.17, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Home visitors as MFIP employment and training service providers.
new text end

new text begin The county social service agency and the local public health department may mutually
agree to utilize home visitors under this section as MFIP employment and training service
providers under section 256J.49, subdivision 4, for MFIP participants who are: (1) ill or
incapacitated under section 256J.425, subdivision 2; or (2) minor caregivers under section
256J.54. The county social service agency and the local public health department may
also mutually agree to utilize home visitors to provide outreach to MFIP families who are
being sanctioned or who have been terminated from MFIP due to the 60-month time limit.
new text end

Sec. 9.

Minnesota Statutes 2008, section 256.045, subdivision 3, is amended to read:

Subd. 3.

State agency hearings.

(a) State agency hearings are available for the
following:

(1) any person applying for, receiving or having received public assistance, medical
care, or a program of social services granted by the state agency or a county agency or
the federal Food Stamp Act whose application for assistance is denied, not acted upon
with reasonable promptness, or whose assistance is suspended, reduced, terminated, or
claimed to have been incorrectly paid;

(2) any patient or relative aggrieved by an order of the commissioner under section
252.27;

(3) a party aggrieved by a ruling of a prepaid health plan;

(4) except as provided under chapter 245C, any individual or facility determined by
a lead agency to have maltreated a vulnerable adult under section 626.557 after they have
exercised their right to administrative reconsideration under section 626.557;

(5) any person whose claim for foster care payment according to a placement of the
child resulting from a child protection assessment under section 626.556 is denied or not
acted upon with reasonable promptness, regardless of funding source;

(6) any person to whom a right of appeal according to this section is given by other
provision of law;

(7) an applicant aggrieved by an adverse decision to an application for a hardship
waiver under section 256B.15;

(8) an applicant aggrieved by an adverse decision to an application or redetermination
for a Medicare Part D prescription drug subsidy under section 256B.04, subdivision 4a;

(9) except as provided under chapter 245A, an individual or facility determined
to have maltreated a minor under section 626.556, after the individual or facility has
exercised the right to administrative reconsideration under section 626.556; deleted text begin or deleted text end

(10) except as provided under chapter 245C, an individual disqualified under sections
245C.14 and 245C.15, on the basis of serious or recurring maltreatment; a preponderance
of the evidence that the individual has committed an act or acts that meet the definition
of any of the crimes listed in section 245C.15, subdivisions 1 to 4; or for failing to make
reports required under section 626.556, subdivision 3, or 626.557, subdivision 3. Hearings
regarding a maltreatment determination under clause (4) or (9) and a disqualification under
this clause in which the basis for a disqualification is serious or recurring maltreatment,
which has not been set aside under sections 245C.22 and 245C.23, shall be consolidated
into a single fair hearing. In such cases, the scope of review by the human services referee
shall include both the maltreatment determination and the disqualification. The failure to
exercise the right to an administrative reconsideration shall not be a bar to a hearing under
this section if federal law provides an individual the right to a hearing to dispute a finding
of maltreatment. Individuals and organizations specified in this section may contest the
specified action, decision, or final disposition before the state agency by submitting a
written request for a hearing to the state agency within 30 days after receiving written
notice of the action, decision, or final disposition, or within 90 days of such written notice
if the applicant, recipient, patient, or relative shows good cause why the request was not
submitted within the 30-day time limit deleted text begin . deleted text end new text begin ; or
new text end

new text begin (11) any person with an outstanding debt resulting from receipt of public assistance,
medical care, or the federal Food Stamp Act who is contesting a setoff claim by the
Department of Human Services or a county agency. The scope of the appeal is the validity
of the claimant agency's intention to request a setoff of a refund under chapter 270A
against the debt.
new text end

(b) The hearing for an individual or facility under paragraph (a), clause (4), (9), or
(10), is the only administrative appeal to the final agency determination specifically,
including a challenge to the accuracy and completeness of data under section 13.04.
Hearings requested under paragraph (a), clause (4), apply only to incidents of maltreatment
that occur on or after October 1, 1995. Hearings requested by nursing assistants in nursing
homes alleged to have maltreated a resident prior to October 1, 1995, shall be held as a
contested case proceeding under the provisions of chapter 14. Hearings requested under
paragraph (a), clause (9), apply only to incidents of maltreatment that occur on or after
July 1, 1997. A hearing for an individual or facility under paragraph (a), clause (9), is
only available when there is no juvenile court or adult criminal action pending. If such
action is filed in either court while an administrative review is pending, the administrative
review must be suspended until the judicial actions are completed. If the juvenile court
action or criminal charge is dismissed or the criminal action overturned, the matter may be
considered in an administrative hearing.

(c) For purposes of this section, bargaining unit grievance procedures are not an
administrative appeal.

(d) The scope of hearings involving claims to foster care payments under paragraph
(a), clause (5), shall be limited to the issue of whether the county is legally responsible
for a child's placement under court order or voluntary placement agreement and, if so,
the correct amount of foster care payment to be made on the child's behalf and shall not
include review of the propriety of the county's child protection determination or child
placement decision.

(e) A vendor of medical care as defined in section 256B.02, subdivision 7, or a
vendor under contract with a county agency to provide social services is not a party and
may not request a hearing under this section, except if assisting a recipient as provided in
subdivision 4.

(f) An applicant or recipient is not entitled to receive social services beyond the
services prescribed under chapter 256M or other social services the person is eligible
for under state law.

(g) The commissioner may summarily affirm the county or state agency's proposed
action without a hearing when the sole issue is an automatic change due to a change in
state or federal law.

Sec. 10.

Minnesota Statutes 2008, section 256.983, subdivision 1, is amended to read:

Subdivision 1.

Programs established.

Within the limits of available appropriations,
the commissioner of human services shall require the maintenance of budget neutral
fraud prevention investigation programs in the counties participating in the fraud
prevention investigation project established under this section. If funds are sufficient,
the commissioner may also extend fraud prevention investigation programs to other
counties provided the expansion is budget neutral to the state. new text begin Under any expansion, the
commissioner has the final authority in decisions regarding the creation and realignment
of individual county or regional operations.
new text end

Sec. 11.

Minnesota Statutes 2008, section 256I.03, subdivision 7, is amended to read:

Subd. 7.

Countable income.

"Countable income" means all income received by an
applicant or recipient less any applicable exclusions or disregards. For a recipient of any
cash benefit from the SSI program, countable income means the SSI benefit limit in effect
at the time the person is in a GRH deleted text begin setting less $20 deleted text end , less the medical assistance personal
needs allowance. If the SSI limit has been reduced for a person due to events occurring
prior to the persons entering the GRH setting, countable income means actual income less
any applicable exclusions and disregards.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective April 1, 2010.
new text end

Sec. 12.

Minnesota Statutes 2008, section 256I.05, subdivision 7c, is amended to read:

Subd. 7c.

Demonstration project.

The commissioner is authorized to pursue new text begin the
expansion of new text end a demonstration project under federal food stamp regulation for the purpose
of gaining new text begin additional new text end federal reimbursement of food and nutritional costs currently paid by
the state group residential housing program. The commissioner shall seek approval no
later than deleted text begin January 1, 2004 deleted text end new text begin October 1, 2009 new text end . Any reimbursement received is nondedicated
revenue to the general fund.

Sec. 13.

Minnesota Statutes 2008, section 256J.24, subdivision 5, is amended to read:

Subd. 5.

MFIP transitional standard.

The MFIP transitional standard is based
on the number of persons in the assistance unit eligible for both food and cash assistance
unless the restrictions in subdivision 6 on the birth of a child apply. The following table
represents the transitional standards effective deleted text begin October 1, 2007 deleted text end new text begin April 1, 2009 new text end .

Number of Eligible People

Transitional Standard

Cash Portion

Food Portion

1	deleted text begin $391 deleted text end new text begin $428 new text end :	$250	deleted text begin $141 deleted text end new text begin $178 new text end
2	deleted text begin $698 deleted text end new text begin $764 new text end :	$437	deleted text begin $261 deleted text end new text begin $327 new text end
3	deleted text begin $910 deleted text end new text begin $1,005 new text end :	$532	deleted text begin $378 deleted text end new text begin $473 new text end
4	deleted text begin $1,091 deleted text end new text begin $1,217 new text end :	$621	deleted text begin $470 deleted text end new text begin $596 new text end
5	deleted text begin $1,245 deleted text end new text begin $1,393 new text end :	$697	deleted text begin $548 deleted text end new text begin $696 new text end
6	deleted text begin $1,425 deleted text end new text begin $1,602 new text end :	$773	deleted text begin $652 deleted text end new text begin $829 new text end
7	deleted text begin $1,553 deleted text end new text begin $1,748 new text end :	$850	deleted text begin $703 deleted text end new text begin $898 new text end
8	deleted text begin $1,713 deleted text end new text begin $1,934 new text end :	$916	deleted text begin $797 deleted text end new text begin $1,018 new text end
9	deleted text begin $1,871 deleted text end new text begin $2,119 new text end :	$980	deleted text begin $891 deleted text end new text begin $1,139 new text end
10	deleted text begin $2,024 deleted text end new text begin $2,298 new text end :	$1,035	deleted text begin $989 deleted text end new text begin $1,263 new text end
over 10	add deleted text begin $151 deleted text end new text begin $178 new text end :	$53	deleted text begin $98 deleted text end new text begin $125 new text end
per additional member.

The commissioner shall annually publish in the State Register the transitional
standard for an assistance unit sizes 1 to 10 including a breakdown of the cash and food
portions.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from April 1, 2009.
new text end

Sec. 14.

Minnesota Statutes 2008, section 256J.425, subdivision 2, is amended to read:

Subd. 2.

Ill or incapacitated.

(a) An assistance unit subject to the time limit in
section 256J.42, subdivision 1, is eligible to receive months of assistance under a hardship
extension if the participant who reached the time limit belongs to any of the following
groups:

(1) participants who are suffering from an illness, injury, or incapacity which
has been certified by a qualified professional when the illness, injury, or incapacity is
expected to continue for more than 30 days and deleted text begin prevents the person from obtaining or
retaining employment deleted text end new text begin severely limits the person's ability to obtain or maintain suitable
employment new text end . These participants must follow the treatment recommendations of the
qualified professional certifying the illness, injury, or incapacity;

(2) participants whose presence in the home is required as a caregiver because of
the illness, injury, or incapacity of another member in the assistance unit, a relative in the
household, or a foster child in the household when the illness or incapacity and the need
for a person to provide assistance in the home has been certified by a qualified professional
and is expected to continue for more than 30 days; or

(3) caregivers with a child or an adult in the household who meets the disability or
medical criteria for home care services under section 256B.0651, subdivision 1, paragraph
(c), or a home and community-based waiver services program under chapter 256B, or
meets the criteria for severe emotional disturbance under section 245.4871, subdivision
6, or for serious and persistent mental illness under section 245.462, subdivision 20,
paragraph (c). Caregivers in this category are presumed to be prevented from obtaining
or retaining employment.

(b) An assistance unit receiving assistance under a hardship extension under this
subdivision may continue to receive assistance as long as the participant meets the criteria
in paragraph (a), clause (1), (2), or (3).

Sec. 15.

Minnesota Statutes 2008, section 256J.425, subdivision 3, is amended to read:

Subd. 3.

Hard-to-employ participants.

new text begin (a) new text end An assistance unit subject to the time
limit in section 256J.42, subdivision 1, is eligible to receive months of assistance under
a hardship extension if the participant who reached the time limit belongs to any of the
following groups:

(1) a person who is diagnosed by a licensed physician, psychological practitioner,
or other qualified professional, as developmentally disabled or mentally ill, and deleted text begin that
condition prevents the person from obtaining or retaining unsubsidized employment deleted text end new text begin the
condition severely limits the person's ability to obtain or maintain suitable employment new text end ;

(2) a person who:

(i) has been assessed by a vocational specialist or the county agency to be
unemployable for purposes of this subdivision; or

(ii) has an IQ below 80 who has been assessed by a vocational specialist or a county
agency to be employable, but deleted text begin not at a level that makes the participant eligible for an
extension under subdivision 4 deleted text end new text begin the condition severely limits the person's ability to obtain or
maintain suitable employment new text end . The determination of IQ level must be made by a qualified
professional. In the case of a non-English-speaking person: (A) the determination must
be made by a qualified professional with experience conducting culturally appropriate
assessments, whenever possible; (B) the county may accept reports that identify an
IQ range as opposed to a specific score; (C) these reports must include a statement of
confidence in the results;

(3) a person who is determined by a qualified professional to be learning disabled,
and the deleted text begin disability deleted text end new text begin condition new text end severely limits the person's ability to obtain deleted text begin , perform, deleted text end or
maintain suitable employment. For purposes of the initial approval of a learning disability
extension, the determination must have been made or confirmed within the previous 12
months. In the case of a non-English-speaking person: (i) the determination must be made
by a qualified professional with experience conducting culturally appropriate assessments,
whenever possible; and (ii) these reports must include a statement of confidence in the
results. If a rehabilitation plan for a participant extended as learning disabled is developed
or approved by the county agency, the plan must be incorporated into the employment
plan. However, a rehabilitation plan does not replace the requirement to develop and
comply with an employment plan under section 256J.521; or

(4) a person who has been granted a family violence waiver, and who is complying
with an employment plan under section 256J.521, subdivision 3.

new text begin (b) For purposes of this section, "severely limits the person's ability to obtain or
maintain suitable employment" means that a qualified professional has determined that the
person's condition prevents the person from working 20 or more hours per week.
new text end

Sec. 16.

Minnesota Statutes 2008, section 256J.49, subdivision 1, is amended to read:

Subdivision 1.

Scope.

The terms used in sections deleted text begin 256J.50 deleted text end new text begin 256J.425 new text end to 256J.72 have
the meanings given them in this section.

Sec. 17.

Minnesota Statutes 2008, section 256J.49, subdivision 4, is amended to read:

Subd. 4.

Employment and training service provider.

"Employment and training
service provider" means:

(1) a public, private, or nonprofit agency with which a county has contracted to
provide employment and training services and which is included in the county's service
agreement submitted under section 256J.626, subdivision 4; deleted text begin or
deleted text end

(2) a county agency, if the county has opted to provide employment and training
services and the county has indicated that fact in the service agreement submitted under
section 256J.626, subdivision 4 new text begin ; or
new text end

new text begin (3) a local public health department under section 145A.17, subdivision 3a, that a
county has designated to provide employment and training services and is included in the
county's service agreement submitted under section 256J.626, subdivision 4 new text end .

Notwithstanding section 116L.871, an employment and training services provider
meeting this definition may deliver employment and training services under this chapter.

Sec. 18.

Minnesota Statutes 2008, section 256J.521, subdivision 2, is amended to read:

Subd. 2.

Employment plan; contents.

(a) Based on the assessment under
subdivision 1, the job counselor and the participant must develop an employment plan
that includes participation in activities and hours that meet the requirements of section
256J.55, subdivision 1. The purpose of the employment plan is to identify for each
participant the most direct path to unsubsidized employment and any subsequent steps that
support long-term economic stability. The employment plan should be developed using
the highest level of activity appropriate for the participant. Activities must be chosen from
clauses (1) to (6), which are listed in order of preference. Notwithstanding this order of
preference for activities, priority must be given for activities related to a family violence
waiver when developing the employment plan. The employment plan must also list the
specific steps the participant will take to obtain employment, including steps necessary
for the participant to progress from one level of activity to another, and a timetable for
completion of each step. Levels of activity include:

(1) unsubsidized employment;

(2) job search;

(3) subsidized employment or unpaid work experience;

(4) unsubsidized employment and job readiness education or job skills training;

(5) unsubsidized employment or unpaid work experience and activities related to
a family violence waiver or preemployment needs; and

(6) activities related to a family violence waiver or preemployment needs.

(b) Participants who are determined to possess sufficient skills such that the
participant is likely to succeed in obtaining unsubsidized employment must job search at
least 30 hours per week for up to six weeks and accept any offer of suitable employment.
The remaining hours necessary to meet the requirements of section 256J.55, subdivision
1, may be met through participation in other work activities under section 256J.49,
subdivision 13. The participant's employment plan must specify, at a minimum: (1)
whether the job search is supervised or unsupervised; (2) support services that will
be provided; and (3) how frequently the participant must report to the job counselor.
Participants who are unable to find suitable employment after six weeks must meet
with the job counselor to determine whether other activities in paragraph (a) should be
incorporated into the employment plan. Job search activities which are continued after six
weeks must be structured and supervised.

(c) deleted text begin Beginning July 1, 2004, activities and hourly requirements in the employment
plan may be adjusted as necessary to accommodate the personal and family circumstances
of participants identified under section 256J.561, subdivision 2, paragraph (d). Participants
who no longer meet the provisions of section 256J.561, subdivision 2, paragraph (d),
must meet with the job counselor within ten days of the determination to revise the
employment plan.
deleted text end

deleted text begin (d) deleted text end Participants who are determined to have barriers to obtaining or retaining
employment that will not be overcome during six weeks of job search under paragraph (b)
must work with the job counselor to develop an employment plan that addresses those
barriers by incorporating appropriate activities from paragraph (a), clauses (1) to (6).
The employment plan must include enough hours to meet the participation requirements
in section 256J.55, subdivision 1, unless a compelling reason to require fewer hours
is noted in the participant's file.

deleted text begin (e) deleted text end new text begin (d) new text end The job counselor and the participant must sign the employment plan to
indicate agreement on the contents.

deleted text begin (f) deleted text end new text begin (e) new text end Except as provided under paragraph deleted text begin (g) deleted text end new text begin (f) new text end , failure to develop or comply with
activities in the plan, or voluntarily quitting suitable employment without good cause, will
result in the imposition of a sanction under section 256J.46.

deleted text begin (g) deleted text end new text begin (f) new text end When a participant fails to meet the agreed upon hours of participation in paid
employment because the participant is not eligible for holiday pay and the participant's
place of employment is closed for a holiday, the job counselor shall not impose a sanction
or increase the hours of participation in any other activity, including paid employment, to
offset the hours that were missed due to the holiday.

deleted text begin (h) deleted text end new text begin (g) new text end Employment plans must be reviewed at least every three months to determine
whether activities and hourly requirements should be revised. The job counselor is
encouraged to allow participants who are participating in at least 20 hours of work
activities to also participate in education and training activities in order to meet the federal
hourly participation rates.

Sec. 19.

Minnesota Statutes 2008, section 256J.545, is amended to read:

256J.545 FAMILY VIOLENCE WAIVER CRITERIA.

(a) In order to qualify for a family violence waiver, an individual must provide
documentation of past or current family violence which may prevent the individual from
participating in certain employment activities.

(b) The following items may be considered acceptable documentation or verification
of family violence:

(1) police, government agency, or court records;

(2) a statement from a battered women's shelter staff with knowledge of the
circumstances deleted text begin or credible evidence that supports the sworn statement deleted text end ;

(3) a statement from a sexual assault or domestic violence advocate with knowledge
of the circumstances deleted text begin or credible evidence that supports the sworn statement deleted text end ; or

(4) a statement from professionals from whom the applicant or recipient has sought
assistance for the abuse.

(c) A claim of family violence may also be documented by a sworn statement from
the applicant or participant and a sworn statement from any other person with knowledge
of the circumstances or credible evidence that supports the client's statement.

Sec. 20.

Minnesota Statutes 2008, section 256J.561, subdivision 2, is amended to read:

Subd. 2.

Participation requirements.

(a) All MFIP caregivers, except caregivers
who meet the criteria in subdivision 3, must deleted text begin participate in employment services deleted text end new text begin develop an
individualized employment plan that identifies the activities the participant is required to
participate in and the required hours of participation new text end . deleted text begin Except as specified in paragraphs (b)
to (d), the employment plan must meet the requirements of section 256J.521, subdivision
2, contain allowable work activities, as defined in section 256J.49, subdivision 13, and,
include at a minimum, the number of participation hours required under section 256J.55,
subdivision 1.
deleted text end

deleted text begin (b) Minor caregivers and caregivers who are less than age 20 who have not
completed high school or obtained a GED are required to comply with section 256J.54.
deleted text end

deleted text begin (c) A participant who has a family violence waiver shall develop and comply with
an employment plan under section 256J.521, subdivision 3.
deleted text end

deleted text begin (d) As specified in section 256J.521, subdivision 2, paragraph (c), a participant who
meets any one of the following criteria may work with the job counselor to develop an
employment plan that contains less than the number of participation hours under section
256J.55, subdivision 1. Employment plans for participants covered under this paragraph
must be tailored to recognize the special circumstances of caregivers and families
including limitations due to illness or disability and caregiving needs:
deleted text end

deleted text begin (1) a participant who is age 60 or older;
deleted text end

deleted text begin (2) a participant who has been diagnosed by a qualified professional as suffering
from an illness or incapacity that is expected to last for 30 days or more, including a
pregnant participant who is determined to be unable to obtain or retain employment due
to the pregnancy; or
deleted text end

deleted text begin (3) a participant who is determined by a qualified professional as being needed in
the home to care for an ill or incapacitated family member, including caregivers with a
child or an adult in the household who meets the disability or medical criteria for home
care services under section 256B.0651, subdivision 1, paragraph (c), or a home and
community-based waiver services program under chapter 256B, or meets the criteria for
severe emotional disturbance under section 245.4871, subdivision 6, or for serious and
persistent mental illness under section 245.462, subdivision 20, paragraph (c).
deleted text end

deleted text begin (e) For participants covered under paragraphs (c) and (d), the county shall review
the participant's employment services status every three months to determine whether
conditions have changed. When it is determined that the participant's status is no longer
covered under paragraph (c) or (d), the county shall notify the participant that a new or
revised employment plan is needed. The participant and job counselor shall meet within
ten days of the determination to revise the employment plan.
deleted text end

new text begin (b) Participants who meet the eligibility requirements in section 256J.575,
subdivision 3, must develop a family stabilization services plan that meets the
requirements in section 256J.575, subdivision 5.
new text end

new text begin (c) Minor caregivers and caregivers who are less than age 20 who have not
completed high school or obtained a GED must develop an education plan that meets the
requirements in section 256J.54.
new text end

new text begin (d) Participants with a family violence waiver must develop an employment plan
that meets the requirements in section 256J.521, which cover the provisions in section
256J.575, subdivision 5.
new text end

new text begin (e) All other participants must develop an employment plan that meets the
requirements of section 256J.521, subdivision 2, and contains allowable work activities,
as defined in section 256J.49, subdivision 13. The employment plan must include, at a
minimum, the number of participation hours required under section 256J.55, subdivision 1.
new text end

Sec. 21.

Minnesota Statutes 2008, section 256J.561, subdivision 3, is amended to read:

Subd. 3.

Child under 12 deleted text begin weeks deleted text end new text begin months new text end of age.

(a) A participant who has a
natural born child who is less than 12 deleted text begin weeks deleted text end new text begin months new text end of age who meets the criteria in this
subdivision is not required to participate in employment services until the child reaches
12 deleted text begin weeks deleted text end new text begin months new text end of age. To be eligible for this provision, the assistance unit must not
have already used this provision or the previously allowed child under age one exemption.
However, an assistance unit that has an approved child under age one exemption at the
time this provision becomes effective may continue to use that exemption until the child
reaches one year of age.

(b) The provision in paragraph (a) ends the first full month after the child reaches
12 deleted text begin weeks deleted text end new text begin months new text end of age. This provision is available only once in a caregiver's lifetime.
In a two-parent household, only one parent shall be allowed to use this provision. The
participant and job counselor must meet within ten days after the child reaches 12 deleted text begin weeks deleted text end new text begin
months new text end of age to revise the participant's employment plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 22.

Minnesota Statutes 2008, section 256J.57, subdivision 1, is amended to read:

Subdivision 1.

Good cause for failure to comply.

The county agency shall not
impose the sanction under section 256J.46 if it determines that the participant has good
cause for failing to comply with the requirements of sections 256J.515 to 256J.57. Good
cause exists when:

(1) appropriate child care is not available;

(2) the job does not meet the definition of suitable employment;

(3) the participant is ill or injured;

(4) a member of the assistance unit, a relative in the household, or a foster child in
the household is ill and needs care by the participant that prevents the participant from
complying with the employment plan;

(5) the participant is unable to secure necessary transportation;

(6) the participant is in an emergency situation that prevents compliance with the
employment plan;

(7) the schedule of compliance with the employment plan conflicts with judicial
proceedings;

(8) a mandatory MFIP meeting is scheduled during a time that conflicts with a
judicial proceeding or a meeting related to a juvenile court matter, or a participant's work
schedule;

(9) the participant is already participating in acceptable work activities;

(10) the employment plan requires an educational program for a caregiver under age
20, but the educational program is not available;

(11) activities identified in the employment plan are not available;

(12) the participant is willing to accept suitable employment, but suitable
employment is not available; deleted text begin or
deleted text end

(13) the participant documents other verifiable impediments to compliance with the
employment plan beyond the participant's control new text begin ; or
new text end

new text begin (14) the documentation needed to determine if a participant is eligible for family
stabilization services is not available, but there is information that the participant may
qualify and the participant is cooperating with the county or employment service provider's
efforts to obtain the documentation necessary to determine eligibility new text end .

The job counselor shall work with the participant to reschedule mandatory meetings
for individuals who fall under clauses (1), (3), (4), (5), (6), (7), and (8).

Sec. 23.

Minnesota Statutes 2008, section 256J.575, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

(a) The following MFIP deleted text begin or diversionary work program (DWP) deleted text end
participants are eligible for the services under this section:

(1) a participant who meets the requirements for or has been granted a hardship
extension under section 256J.425, subdivision 2 or 3, except that it is not necessary for
the participant to have reached or be approaching 60 months of eligibility for this section
to apply;

(2) a participant who is applying for Supplemental Security Income or Social
Security disability insurance; deleted text begin and
deleted text end

(3) a participant who is a noncitizen who has been in the United States for 12 or
fewer months new text begin ; and
new text end

new text begin (4) a participant who is age 60 or older new text end .

(b) Families must meet all other eligibility requirements for MFIP established in
this chapter. Families are eligible for financial assistance to the same extent as if they
were participating in MFIP.

(c) A participant under paragraph (a), clause (3), must be provided with English as a
second language opportunities and skills training for up to 12 months. After 12 months,
the case manager and participant must determine whether the participant should continue
with English as a second language classes or skills training, or both, and continue to
receive family stabilization services.

new text begin (d) If a county agency or employment services provider has information that
an MFIP participant may meet the eligibility criteria set forth in this subdivision, the
county agency or employment services provider must assist the participant in obtaining
the documentation necessary to determine eligibility. Until necessary documentation is
obtained, the participant must be treated as an eligible participant under subdivisions 5 to 7.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, except the amendment
to paragraph (a) striking "or diversionary work program (DWP)" is effective March 1,
2010.
new text end

Sec. 24.

Minnesota Statutes 2008, section 256J.575, subdivision 4, is amended to read:

Subd. 4.

Universal participation.

All caregivers must participate in family
stabilization services as defined in subdivision 2 new text begin , except for caregivers exempt under
section 256J.561, subdivision 3 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 25.

Minnesota Statutes 2008, section 256J.575, subdivision 6, is amended to read:

Subd. 6.

Cooperation with services requirements.

(a) deleted text begin To be eligible, deleted text end A participant
new text begin who is eligible for family stabilization services under this section new text end shall comply with
paragraphs (b) to (d).

(b) Participants shall engage in family stabilization plan services for the appropriate
number of hours per week that the activities are scheduled and available, unless good
cause exists for not doing so, as defined in section 256J.57, subdivision 1. The appropriate
number of hours must be based on the participant's plan.

(c) The case manager shall review the participant's progress toward the goals in the
family stabilization plan every six months to determine whether conditions have changed,
including whether revisions to the plan are needed.

(d) A participant's requirement to comply with any or all family stabilization plan
requirements under this subdivision is excused when the case management services,
training and educational services, or family support services identified in the participant's
family stabilization plan are unavailable for reasons beyond the control of the participant,
including when money appropriated is not sufficient to provide the services.

Sec. 26.

Minnesota Statutes 2008, section 256J.575, subdivision 7, is amended to read:

Subd. 7.

Sanctions.

(a) new text begin The county agency or employment services provider must
follow the requirements of this subdivision at the time the county agency or employment
services provider has information that an MFIP recipient may meet the eligibility criteria
in subdivision 3.
new text end

new text begin (b) new text end The financial assistance grant of a participating family is reduced according to
section 256J.46, if a participating adult fails without good cause to comply or continue
to comply with the family stabilization plan requirements in this subdivision, unless
compliance has been excused under subdivision 6, paragraph (d).

deleted text begin (b) deleted text end new text begin (c) new text end Given the purpose of the family stabilization services in this section and the
nature of the underlying family circumstances that act as barriers to both employment and
full compliance with program requirements, there must be a review by the county agency
prior to imposing a sanction to determine whether the plan was appropriated to the needs
of the participant and family deleted text begin , and deleted text end new text begin . There must be a current assessment by a behavioral
health or medical professional confirming new text end that the participant in all ways had the ability to
comply with the plan deleted text begin , as confirmed by a behavioral health or medical professional deleted text end .

deleted text begin (c) deleted text end new text begin (d) new text end Prior to the imposition of a sanction, the county agency or employment
services provider shall review the participant's case to determine if the family stabilization
plan is still appropriate and meet with the participant face-to-face. deleted text begin The participant may
bring an advocate deleted text end new text begin The county agency or employment services provider must inform the
participant of the right to bring an advocate new text end to the face-to-face meeting.

During the face-to-face meeting, the county agency shall:

(1) determine whether the continued noncompliance can be explained and mitigated
by providing a needed family stabilization service, as defined in subdivision 2, paragraph
(d);

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

(3) determine whether activities in the family stabilization plan are appropriate
based on the family's circumstances;

(4) explain the consequences of continuing noncompliance;

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

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

If the lack of an identified activity or service can explain the noncompliance, the
county shall work with the participant to provide the identified activity.

(d) If the participant fails to come to the face-to-face meeting, the case manager or a
designee shall attempt at least one home visit. If a face-to-face meeting is not conducted,
the county agency shall send the participant a written notice that includes the information
under paragraph (c).

(e) After the requirements of paragraphs (c) and (d) are met and prior to imposition
of a sanction, the county agency shall provide a notice of intent to sanction under section
256J.57, subdivision 2, and, when applicable, a notice of adverse action under section
256J.31.

(f) Section 256J.57 applies to this section except to the extent that it is modified
by this subdivision.

Sec. 27.

Minnesota Statutes 2008, section 256J.621, is amended to read:

256J.621 WORK PARTICIPATION CASH BENEFITS.

(a) Effective October 1, 2009, upon exiting the diversionary work program (DWP)
or upon terminating the Minnesota family investment program with earnings, a participant
who is employed may be eligible for work participation cash benefits of deleted text begin $75 deleted text end new text begin $50 new text end per
month to assist in meeting the family's basic needs as the participant continues to move
toward self-sufficiency.

(b) To be eligible for work participation cash benefits, the participant shall not
receive MFIP or diversionary work program assistance during the month and the
participant or participants must meet the following work requirements:

(1) if the participant is a single caregiver and has a child under six years of age, the
participant must be employed at least 87 hours per month;

(2) if the participant is a single caregiver and does not have a child under six years of
age, the participant must be employed at least 130 hours per month; or

(3) if the household is a two-parent family, at least one of the parents must be
employed an average of at least 130 hours per month.

Whenever a participant exits the diversionary work program or is terminated from
MFIP and meets the other criteria in this section, work participation cash benefits are
available for up to 24 consecutive months.

(c) Expenditures on the program are maintenance of effort state funds new text begin under
a separate state program new text end for participants under paragraph (b), clauses (1) and (2).
Expenditures for participants under paragraph (b), clause (3), are nonmaintenance of effort
funds. Months in which a participant receives work participation cash benefits under this
section do not count toward the participant's MFIP 60-month time limit.

Sec. 28.

Minnesota Statutes 2008, section 256J.626, subdivision 7, is amended to read:

Subd. 7.

Performance base funds.

(a) new text begin For the purpose of this section, the following
terms have the meanings given.
new text end

new text begin (1) "Caseload Reduction Credit" (CRC) means the measure of how much Minnesota
TANF and separate state program caseload has fallen relative to federal fiscal year 2005
based on caseload data from October 1 to September 30.
new text end

new text begin (2) "TANF participation rate target" means a 50 percent participation rate reduced by
the CRC for the previous year.
new text end

new text begin (b) new text end For calendar year deleted text begin 2009 deleted text end new text begin 2010 new text end and yearly thereafter, each county and tribe will be
allocated 95 percent of their initial calendar year allocation. Counties and tribes will be
allocated additional funds based on performance as follows:

(1) a county or tribe that achieves deleted text begin a 50 percent deleted text end new text begin the new text end TANF participation rate new text begin target new text end
or a five percentage point improvement over the previous year's TANF participation rate
under section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive
months for the most recent year for which the measurements are available, will receive an
additional allocation equal to 2.5 percent of its initial allocation; deleted text begin and
deleted text end

(2) a county or tribe that performs within or above its range of expected performance
on the annualized three-year self-support index under section 256J.751, subdivision 2,
clause (6), will receive an additional allocation equal to 2.5 percent of its initial allocation;
and

(3) a county or tribe that does not achieve deleted text begin a 50 percent deleted text end new text begin the new text end TANF participation rate new text begin
target new text end or a five percentage point improvement over the previous year's TANF participation
rate under section 256J.751, subdivision 2, clause (7), as averaged across 12 consecutive
months for the most recent year for which the measurements are available, will not
receive an additional 2.5 percent of its initial allocation until after negotiating a multiyear
improvement plan with the commissioner; or

(4) a county or tribe that does not perform within or above its range of expected
performance on the annualized three-year self-support index under section 256J.751,
subdivision 2, clause (6), will not receive an additional allocation equal to 2.5 percent
of its initial allocation until after negotiating a multiyear improvement plan with the
commissioner.

deleted text begin (b) deleted text end new text begin (c) new text end For calendar year 2009 and yearly thereafter, performance-based funds for
a federally approved tribal TANF program in which the state and tribe have in place
a contract under section 256.01, addressing consolidated funding, will be allocated as
follows:

(1) a tribe that achieves the participation rate approved in its federal TANF plan
using the average of 12 consecutive months for the most recent year for which the
measurements are available, will receive an additional allocation equal to 2.5 percent of
its initial allocation; and

(2) a tribe that performs within or above its range of expected performance on the
annualized three-year self-support index under section 256J.751, subdivision 2, clause (6),
will receive an additional allocation equal to 2.5 percent of its initial allocation; or

(3) a tribe that does not achieve the participation rate approved in its federal TANF
plan using the average of 12 consecutive months for the most recent year for which the
measurements are available, will not receive an additional allocation equal to 2.5 percent
of its initial allocation until after negotiating a multiyear improvement plan with the
commissioner; or

(4) a tribe that does not perform within or above its range of expected performance
on the annualized three-year self-support index under section 256J.751, subdivision
2, clause (6), will not receive an additional allocation equal to 2.5 percent until after
negotiating a multiyear improvement plan with the commissioner.

deleted text begin (c) deleted text end new text begin (d) new text end Funds remaining unallocated after the performance-based allocations
in paragraph deleted text begin (a) deleted text end new text begin (b) new text end are available to the commissioner for innovation projects under
subdivision 5.

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

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

Sec. 29.

Minnesota Statutes 2008, section 256J.95, subdivision 3, is amended to read:

Subd. 3.

Eligibility for diversionary work program.

(a) Except for the categories
of family units listed below, all family units who apply for cash benefits and who
meet MFIP eligibility as required in sections 256J.11 to 256J.15 are eligible and must
participate in the diversionary work program. Family units that are not eligible for the
diversionary work program include:

(1) child only cases;

(2) a single-parent family unit that includes a child under 12 deleted text begin weeks deleted text end new text begin months new text end of age.
A parent is eligible for this exception once in a parent's lifetime and is not eligible if
the parent has already used the previously allowed child under age one exemption from
MFIP employment services;

(3) a minor parent without a high school diploma or its equivalent;

(4) an 18- or 19-year-old caregiver without a high school diploma or its equivalent
who chooses to have an employment plan with an education option;

(5) a caregiver age 60 or over;

(6) family units with a caregiver who received DWP benefits in the 12 months prior
to the month the family applied for DWP, except as provided in paragraph (c);

(7) family units with a caregiver who received MFIP within the 12 months prior to
the month the family unit applied for DWP;

(8) a family unit with a caregiver who received 60 or more months of TANF
assistance;

(9) a family unit with a caregiver who is disqualified from DWP or MFIP due to
fraud; and

(10) refugees and asylees as defined in Code of Federal Regulations, title 45, part
400, subpart d, section 400.43, who arrived in the United States in the 12 months prior to
the date of application for family cash assistance.

(b) A two-parent family must participate in DWP unless both caregivers meet the
criteria for an exception under paragraph (a), clauses (1) through (5), or the family unit
includes a parent who meets the criteria in paragraph (a), clause (6), (7), (8), (9), or (10).

(c) Once DWP eligibility is determined, the four months run consecutively. If a
participant leaves the program for any reason and reapplies during the four-month period,
the county must redetermine eligibility for DWP.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 30.

Minnesota Statutes 2008, section 256J.95, subdivision 11, is amended to read:

Subd. 11.

Universal participation required.

(a) All DWP caregivers, except
caregivers who meet the criteria in paragraph (d), are required to participate in DWP
employment services. Except as specified in paragraphs (b) and (c), employment plans
under DWP must, at a minimum, meet the requirements in section 256J.55, subdivision 1.

(b) A caregiver who is a member of a two-parent family that is required to participate
in DWP who would otherwise be ineligible for DWP under subdivision 3 may be allowed
to develop an employment plan under section 256J.521, subdivision 2, deleted text begin paragraph (c), deleted text end that
may contain alternate activities and reduced hours.

(c) A participant who is a victim of family violence shall be allowed to develop an
employment plan under section 256J.521, subdivision 3. A claim of family violence must
be documented by the applicant or participant by providing a sworn statement which is
supported by collateral documentation in section 256J.545, paragraph (b).

(d) One parent in a two-parent family unit that has a natural born child under 12
deleted text begin weeks deleted text end new text begin months new text end of age is not required to have an employment plan until the child reaches 12
deleted text begin weeks deleted text end new text begin months new text end of age unless the family unit has already used the exclusion under section
256J.561, subdivision 3, or the previously allowed child under age one exemption under
section 256J.56, paragraph (a), clause (5).

(e) The provision in paragraph (d) ends the first full month after the child reaches 12
deleted text begin weeks deleted text end new text begin months new text end of age. This provision is allowable only once in a caregiver's lifetime. In a
two-parent household, only one parent shall be allowed to use this category.

(f) The participant and job counselor must meet within ten working days after the
child reaches 12 deleted text begin weeks deleted text end new text begin months new text end of age to revise the participant's employment plan. The
employment plan for a family unit that has a child under 12 deleted text begin weeks deleted text end new text begin months new text end of age that has
already used the exclusion in section 256J.561 or the previously allowed child under
age one exemption under section 256J.56, paragraph (a), clause (5), must be tailored to
recognize the caregiving needs of the parent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 31.

Minnesota Statutes 2008, section 256J.95, subdivision 12, is amended to read:

Subd. 12.

Conversion or referral to MFIP.

(a) If at any time during the DWP
application process or during the four-month DWP eligibility period, it is determined that
a participant is unlikely to benefit from the diversionary work program, the county shall
convert or refer the participant to MFIP as specified in paragraph (d). Participants who are
determined to be unlikely to benefit from the diversionary work program must develop
and sign an employment plan. deleted text begin Participants who meet any one of the criteria in paragraph
(b) shall be considered to be unlikely to benefit from DWP, provided the necessary
documentation is available to support the determination.
deleted text end

(b) A participant who deleted text begin : deleted text end new text begin meets the eligibility requirements under section 256J.575,
subdivision 3, must be considered to be unlikely to benefit from DWP, provided the
necessary documentation is available to support the determination.
new text end

deleted text begin (1) has been determined by a qualified professional as being unable to obtain or retain
employment due to an illness, injury, or incapacity that is expected to last at least 60 days;
deleted text end

deleted text begin (2) is required in the home as a caregiver because of the illness, injury, or incapacity,
of a family member, or a relative in the household, or a foster child, and the illness, injury,
or incapacity and the need for a person to provide assistance in the home has been certified
by a qualified professional and is expected to continue more than 60 days;
deleted text end

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

deleted text begin (4) is pregnant and is determined by a qualified professional as being unable to
obtain or retain employment due to the pregnancy; or
deleted text end

deleted text begin (5) has applied for SSI or SSDI.
deleted text end

(c) In a two-parent family unit, deleted text begin both parents must be deleted text end new text begin if one parent is new text end determined
to be unlikely to benefit from the diversionary work program deleted text begin before deleted text end new text begin , new text end the family unit
deleted text begin can deleted text end new text begin must new text end be converted or referred to MFIP.

(d) A participant who is determined to be unlikely to benefit from the diversionary
work program shall be converted to MFIP and, if the determination was made within 30
days of the initial application for benefits, no additional application form is required.
A participant who is determined to be unlikely to benefit from the diversionary work
program shall be referred to MFIP and, if the determination is made more than 30
days after the initial application, the participant must submit a program change request
form. The county agency shall process the program change request form by the first of
the following month to ensure that no gap in benefits is due to delayed action by the
county agency. In processing the program change request form, the county must follow
section 256J.32, subdivision 1, except that the county agency shall not require additional
verification of the information in the case file from the DWP application unless the
information in the case file is inaccurate, questionable, or no longer current.

(e) The county shall not request a combined application form for a participant who
has exhausted the four months of the diversionary work program, has continued need for
cash and food assistance, and has completed, signed, and submitted a program change
request form within 30 days of the fourth month of the diversionary work program. The
county must process the program change request according to section 256J.32, subdivision
1, except that the county agency shall not require additional verification of information
in the case file unless the information is inaccurate, questionable, or no longer current.
When a participant does not request MFIP within 30 days of the diversionary work
program benefits being exhausted, a new combined application form must be completed
for any subsequent request for MFIP.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 32.

Minnesota Statutes 2008, section 256J.95, subdivision 13, is amended to read:

Subd. 13.

Immediate referral to employment services.

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

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

(2) the employment services provider name and phone number;

(3) deleted text begin the date, time, and location of the scheduled employment services interview;
deleted text end

deleted text begin (4) deleted text end the immediate availability of supportive services, including, but not limited to,
child care, transportation, and other work-related aid; and

deleted text begin (5) deleted text end new text begin (4) new text end the rights, responsibilities, and obligations of participants in the program,
including, but not limited to, the grounds for good cause, the consequences of refusing or
failing to participate fully with program requirements, and the appeal process.

Sec. 33.

Minnesota Statutes 2008, section 259.67, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Extension; adoption finalized after age 16. new text end

new text begin A child who has attained the
age of 16 prior to finalization of their adoption is eligible for extension of the adoption
assistance agreement to the date the child attains age 21 if the child is:
new text end

new text begin (1) completing a secondary education program or a program leading to an equivalent
credential;
new text end

new text begin (2) enrolled in an institution which provides postsecondary or vocational education;
new text end

new text begin (3) participating in a program or activity designed to promote or remove barriers to
employment;
new text end

new text begin (4) employed for at least 80 hours per month; or
new text end

new text begin (5) incapable of doing any of the activities described in clauses (1) to (4) due to a
medical condition which incapability is supported by regularly updated information in
the case plan of the child.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective October 1, 2010.
new text end

Sec. 34.

Minnesota Statutes 2008, section 270A.09, is amended by adding a
subdivision to read:

new text begin Subd. 1b. new text end

new text begin Department of Human Services claims. new text end

new text begin Notwithstanding subdivision 1,
any debtor contesting a setoff claim by the Department of Human Services or a county
agency whose claim relates to a debt resulting from receipt of public assistance, medical
care, or the federal Food Stamp Act shall have a hearing conducted in the same manner as
an appeal under sections 256.045 and 256.0451.
new text end

Sec. 35. new text begin AMERICAN INDIAN CHILD WELFARE PROJECTS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16A.28, the commissioner of human
services shall extend payment of state fiscal year 2009 funds in state fiscal year 2010
to tribes participating in the American Indian child welfare projects under Minnesota
Statutes, section 256.01, subdivision 14b. Future extensions of payment for a tribe
participating in the Indian child welfare projects under Minnesota Statutes, section 256.01,
subdivision 14b, must be granted according to the commissioner's authority under
Minnesota Statutes, section 16A.28.
new text end

Sec. 36. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, section 256I.06, subdivision 9, new text end new text begin is repealed.
new text end

ARTICLE 3

STATE-OPERATED SERVICES/MINNESOTA SEX OFFENDER PROGRAM

Section 1.

Minnesota Statutes 2008, section 246.50, subdivision 5, is amended to read:

Subd. 5.

Cost of care.

"Cost of care" means the commissioner's charge for services
provided to any person admitted to a state facility.

For purposes of this subdivision, "charge for services" means the deleted text begin cost of services,
treatment, maintenance, bonds issued for capital improvements, depreciation of buildings
and equipment, and indirect costs related to the operation of state facilities. The
commissioner may determine the charge for services on an anticipated average per diem
basis as an all inclusive charge per facility, per disability group, or per treatment program.
The commissioner may determine a charge per service, using a method that includes direct
and indirect costs deleted text end new text begin usual and customary fee charged for services provided to clients. The
usual and customary fee shall be established in a manner required to appropriately bill
services to all payers and shall include the costs related to the operations of any program
offered by the state new text end .

Sec. 2.

Minnesota Statutes 2008, section 246.50, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin State-operated community-based program. new text end

new text begin "State-operated
community-based program" means any program operated in the community including
community behavioral health hospitals, crisis centers, residential facilities, outpatient
services, and other community-based services developed and operated by the state and
under the commissioner's control.
new text end

Sec. 3.

Minnesota Statutes 2008, section 246.50, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Health plan company. new text end

new text begin "Health plan company" has the meaning given it
in section 62Q.01, subdivision 4, and also includes a demonstration provider as defined in
section 256B.69, subdivision 2, paragraph (b), a county or group of counties participating
in county-based purchasing according to section 256B.692, and a children's mental health
collaborative under contract to provide medical assistance for individuals enrolled in
the prepaid medical assistance and MinnesotaCare programs under sections 245.493 to
245.495.
new text end

Sec. 4.

Minnesota Statutes 2008, section 246.51, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Clients in state-operated community-based programs; determination.
new text end

new text begin The commissioner shall determine available health plan coverage from a health plan
company for services provided to clients admitted to a state-operated community-based
program. If the health plan coverage requires a co-pay or deductible, or if there is no
available health plan coverage, the commissioner shall determine or redetermine, what
part of the noncovered cost of care, if any, the client is able to pay. If the client is unable to
pay the uncovered cost of care, the commissioner shall determine the client's relatives'
ability to pay. The client and relatives shall provide to the commissioner documents and
proof necessary to determine the client and relatives' ability to pay. Failure to provide the
commissioner with sufficient information to determine ability to pay may make the client
or relatives liable for the full cost of care until the time when sufficient information is
provided. If it is determined that the responsible party does not have the ability to pay,
the commissioner shall waive payment of the portion that exceeds ability to pay under
the determination.
new text end

Sec. 5.

Minnesota Statutes 2008, section 246.51, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Clients served by regional treatment centers or nursing homes;
determination. new text end

new text begin The commissioner shall determine or redetermine, if necessary, what part
of the cost of care, if any, a client served in regional treatment centers or nursing homes
operated by state-operated services, is able to pay. If the client is unable to pay the full cost
of care, the commissioner shall determine if the client's relatives have the ability to pay.
The client and relatives shall provide to the commissioner documents and proof necessary
to determine the client and relatives' ability to pay. Failure to provide the commissioner
with sufficient information to determine ability to pay may make the client or relatives
liable for the full cost of care until the time when sufficient information is provided. No
parent shall be liable for the cost of care given a client at a regional treatment center after
the client has reached the age of 18 years.
new text end

Sec. 6.

Minnesota Statutes 2008, section 246.511, is amended to read:

246.511 RELATIVE RESPONSIBILITY.

Except for chemical dependency services paid for with funds provided under chapter
254B, a client's relatives shall not, pursuant to the commissioner's authority under section
246.51, be ordered to pay more than deleted text begin ten percent of the cost of deleted text end new text begin the following: (1) for
services provided in a community-based service, the noncovered cost of care as determined
under the ability to pay determination; and (2) for services provided at a regional treatment
center operated by state-operated services, 20 percent of the cost of new text end care, unless they
reside outside the state. Parents of children in state facilities shall have their responsibility
to pay determined according to section 252.27, subdivision 2, or in rules adopted under
chapter 254B if the cost of care is paid under chapter 254B. The commissioner may
accept voluntary payments in excess of deleted text begin ten deleted text end new text begin 20 new text end percent. The commissioner may require
full payment of the full per capita cost of care in state facilities for clients whose parent,
parents, spouse, guardian, or conservator do not reside in Minnesota.

Sec. 7.

Minnesota Statutes 2008, section 246.52, is amended to read:

246.52 PAYMENT FOR CARE; ORDER; ACTION.

The commissioner shall issue an order to the client or the guardian of the estate, if
there be one, and relatives determined able to pay requiring them to pay deleted text begin monthly deleted text end to the
state of Minnesota the amounts so determined the total of which shall not exceed the full
cost of care. Such order shall specifically state the commissioner's determination and shall
be conclusive unless appealed from as herein provided. When a client or relative fails to
pay the amount due hereunder the attorney general, upon request of the commissioner,
may institute, or direct the appropriate county attorney to institute, civil action to recover
such amount.

Sec. 8.

Minnesota Statutes 2008, section 246.54, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

(a) Subdivision 1 does not apply to services provided at the
Minnesota Security Hospital deleted text begin , the Minnesota sex offender program, deleted text end or the Minnesota
extended treatment options program. For services at these facilities, a county's payment
shall be made from the county's own sources of revenue and payments shall be paid as
follows: payments to the state from the county shall equal ten percent of the cost of care,
as determined by the commissioner, for each day, or the portion thereof, that the client
spends at the facility. If payments received by the state under sections 246.50 to 246.53
exceed 90 percent of the cost of care, the county shall be responsible for paying the state
only the remaining amount. The county shall not be entitled to reimbursement from the
client, the client's estate, or from the client's relatives, except as provided in section 246.53.

(b) Regardless of the facility to which the client is committed, subdivision 1 does
not apply to the following individuals:

(1) clients who are committed as mentally ill and dangerous under section 253B.02,
subdivision 17;

(2) clients who are committed as sexual psychopathic personalities under section
253B.02, subdivision 18b; and

(3) clients who are committed as sexually dangerous persons under section 253B.02,
subdivision 18c.

For each of the individuals in clauses (1) to (3), the payment by the county to the state
shall equal ten percent of the cost of care for each day as determined by the commissioner.

Sec. 9.

Minnesota Statutes 2008, section 246B.01, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Client. new text end

new text begin "Client" means a person who is admitted to the Minnesota sex
offender program or subject to a court hold order under section 253B.185 for the purpose
of assessment, diagnosis, care, treatment, supervision, or other services provided by the
Minnesota sex offender program.
new text end

Sec. 10.

Minnesota Statutes 2008, section 246B.01, is amended by adding a
subdivision to read:

new text begin Subd. 1b. new text end

new text begin Client's county. new text end

new text begin "Client's county" means the county of the client's
legal settlement for poor relief purposes at the time of commitment. If the client has no
legal settlement for poor relief in this state, it means the county of commitment, except
that when a client with no legal settlement for poor relief is committed while serving a
sentence at a penal institution, it means the county from which the client was sentenced.
new text end

Sec. 11.

Minnesota Statutes 2008, section 246B.01, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Cost of care. new text end

new text begin "Cost of care" means the commissioner's charge for housing
and treatment services provided to any person admitted to the Minnesota sex offender
program.
new text end

new text begin For purposes of this subdivision, "charge for housing and treatment services" means
the cost of services, treatment, maintenance, bonds issued for capital improvements,
depreciation of buildings and equipment, and indirect costs related to the operation of
state facilities. The commissioner may determine the charge for services on an anticipated
average per diem basis as an all-inclusive charge per facility.
new text end

Sec. 12.

Minnesota Statutes 2008, section 246B.01, is amended by adding a
subdivision to read:

new text begin Subd. 2b. new text end

new text begin Local social services agency. new text end

new text begin "Local social services agency" means the
local social services agency of the client's county as defined in subdivision 1b and of the
county of commitment, and any other local social services agency possessing information
regarding, or requested by the commissioner to investigate, the financial circumstances
of a client.
new text end

Sec. 13.

new text begin [246B.07] PAYMENT FOR CARE AND TREATMENT:
DETERMINATION.
new text end

new text begin Subdivision 1. new text end

new text begin Procedures. new text end

new text begin The commissioner shall determine or redetermine, if
necessary, what amount of the cost of care, if any, the client is able to pay. The client shall
provide to the commissioner documents and proof necessary to determine the ability to
pay. Failure to provide the commissioner with sufficient information to determine ability
to pay may make the client liable for the full cost of care until the time when sufficient
information is provided.
new text end

new text begin Subd. 2. new text end

new text begin Rules. new text end

new text begin The commissioner shall use the standards in section 246.51,
subdivision 2, to determine the client's liability for the care provided by the Minnesota sex
offender program.
new text end

new text begin Subd. 3. new text end

new text begin Applicability. new text end

new text begin The commissioner may recover, under sections 246B.07 to
246B.10, the cost of any care provided by the Minnesota sex offender program.
new text end

Sec. 14.

new text begin [246B.08] PAYMENT FOR CARE; ORDER; ACTION.
new text end

new text begin The commissioner shall issue an order to the client or the guardian of the estate, if
there is one, requiring the client or guardian to pay to the state the amounts determined, the
total of which must not exceed the full cost of care. The order must specifically state the
commissioner's determination and must be conclusive, unless appealed. If a client fails to
pay the amount due, the attorney general, upon request of the commissioner, may institute,
or direct the appropriate county attorney to institute a civil action to recover the amount.
new text end

Sec. 15.

new text begin [246B.09] CLAIM AGAINST ESTATE OF DECEASED CLIENT.
new text end

new text begin Subdivision 1. new text end

new text begin Client's estate. new text end

new text begin Upon the death of a client, or a former client, the
total cost of care provided to the client, less the amount actually paid toward the cost of
care by the client, must be filed by the commissioner as a claim against the estate of the
client with the court having jurisdiction to probate the estate, and all proceeds collected
by the state in the case must be divided between the state and county in proportion to
the cost of care each has borne.
new text end

new text begin Subd. 2. new text end

new text begin Preferred status. new text end

new text begin An estate claim in subdivision 1 must be considered an
expense of the last illness for purposes of section 524.3-805.
new text end

new text begin If the commissioner determines that the property or estate of a client is not more
than needed to care for and maintain the spouse and minor or dependent children of a
deceased client, the commissioner has the power to compromise the claim of the state in a
manner deemed just and proper.
new text end

new text begin Subd. 3. new text end

new text begin Exception from statute of limitations. new text end

new text begin Any statute of limitations that
limits the commissioner in recovering the cost of care obligation incurred by a client or
former client must not apply to any claim against an estate made under this section to
recover cost of care.
new text end

Sec. 16.

new text begin [246B.10] LIABILITY OF COUNTY; REIMBURSEMENT.
new text end

new text begin The client's county shall pay to the state a portion of the cost of care provided in
the Minnesota sex offender program to a client who has legally settled in that county. A
county's payment must be made from the county's own sources of revenue and payments
must equal ten percent of the cost of care, as determined by the commissioner, for each
day or portion of a day, that the client spends at the facility. If payments received by the
state under this chapter exceed 90 percent of the cost of care, the county is responsible
for paying the state the remaining amount. The county is not entitled to reimbursement
from the client, the client's estate, or from the client's relatives, except as provided in
section 246B.07.
new text end

Sec. 17.

Minnesota Statutes 2008, section 252.025, subdivision 7, is amended to read:

Subd. 7.

Minnesota extended treatment options.

The commissioner shall develop
by July 1, 1997, the Minnesota extended treatment options to serve Minnesotans who have
developmental disabilities and exhibit severe behaviors which present a risk to public
safety. This program new text begin is statewide and new text end must provide specialized residential services in
Cambridge and an array of deleted text begin community support deleted text end new text begin community-based new text end services deleted text begin statewide deleted text end new text begin with
sufficient levels of care and a sufficient number of specialists to ensure that individuals
referred to the program receive the appropriate care. The individuals working in the
community-based services under this section are state employees supervised by the
commissioner of human services. No layoffs shall occur as a result of restructuring
under this section new text end .

Sec. 18. new text begin REQUIRING THE DEVELOPMENT OF COMMUNITY-BASED
MENTAL HEALTH SERVICES FOR PATIENTS COMMITTED TO THE
ANOKA-METRO REGIONAL TREATMENT CENTER.
new text end

new text begin In consultation with community partners, the commissioner of human services
shall develop an array of community-based services to transform the current services
now provided to patients at the Anoka-Metro Regional Treatment Center. The
community-based services may be provided in facilities with 16 or fewer beds, and must
provide the appropriate level of care for the patients being admitted to the facilities. The
planning for this transition must be completed by October 1, 2009, with an initial report
to the committee chairs of health and human services by November 30, 2009, and a
semiannual report on progress until the transition is completed. The commissioner of
human services shall solicit interest from stakeholders and potential community partners.
The individuals working in the community-based services facilities under this section are
state employees supervised by the commissioner of human services. No layoffs shall
occur as a result of restructuring under this section.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 246.51, subdivision 1; and 246.53, subdivision
3, new text end new text begin are repealed.
new text end

ARTICLE 4

DEPARTMENT OF HEALTH

Section 1.

Minnesota Statutes 2008, section 62J.495, is amended to read:

62J.495 HEALTH INFORMATION TECHNOLOGY AND
INFRASTRUCTURE.

Subdivision 1.

Implementation.

By January 1, 2015, all hospitals and health care
providers must have in place an interoperable electronic health records system within their
hospital system or clinical practice setting. The commissioner of health, in consultation
with the new text begin e- new text end Health deleted text begin Information Technology and Infrastructure deleted text end Advisory Committee,
shall develop a statewide plan to meet this goal, including uniform standards to be used
for the interoperable system for sharing and synchronizing patient data across systems.
The standards must be compatible with federal efforts. The uniform standards must be
developed by January 1, 2009, deleted text begin with a status report on the development of these standards
submitted to the legislature by January 15, 2008 deleted text end new text begin and updated on an ongoing basis. The
commissioner shall include an update on standards development as part of an annual
report to the legislature new text end .

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) "Certified electronic health record technology" means an
electronic health record that is certified pursuant to section 3001(c)(5) of the HITECH
Act to meet the standards and implementation specifications adopted under section 3004
as applicable.
new text end

new text begin (b) "Commissioner" means the commissioner of health.
new text end

new text begin (c) "Pharmaceutical electronic data intermediary" means any entity that provides
the infrastructure to connect computer systems or other electronic devices utilized
by prescribing practitioners with those used by pharmacies, health plans, third party
administrators, and pharmacy benefit manager in order to facilitate the secure transmission
of electronic prescriptions, refill authorization requests, communications, and other
prescription-related information between such entities.
new text end

new text begin (d) "HITECH Act" means the Health Information Technology for Economic and
Clinical Health Act in division A, title XIII and division B, title IV of the American
Recovery and Reinvestment Act of 2009, including federal regulations adopted under
that act.
new text end

new text begin (e) "Interoperable electronic health record" means an electronic health record that
securely exchanges health information with another electronic health record system that
meets national requirements for certification under the HITECH Act.
new text end

new text begin (f) "Qualified electronic health record" means an electronic record of health-related
information on an individual that includes patient demographic and clinical health
information and has the capacity to:
new text end

new text begin (1) provide clinical decision support;
new text end

new text begin (2) support physician order entry;
new text end

new text begin (3) capture and query information relevant to health care quality; and
new text end

new text begin (4) exchange electronic health information with, and integrate such information
from, other sources.
new text end

Subd. 2.

new text begin E- new text end Health deleted text begin Information Technology and Infrastructure deleted text end Advisory
Committee.

(a) The commissioner shall establish deleted text begin a deleted text end new text begin an e- new text end Health deleted text begin Information Technology
and Infrastructure deleted text end Advisory Committee governed by section 15.059 to advise the
commissioner on the following matters:

(1) assessment of the new text begin adoption and effective new text end use of health information technology by
the state, licensed health care providers and facilities, and local public health agencies;

(2) recommendations for implementing a statewide interoperable health information
infrastructure, to include estimates of necessary resources, and for determining standards
for deleted text begin administrative deleted text end new text begin clinical new text end data exchange, clinical support programs, patient privacy
requirements, and maintenance of the security and confidentiality of individual patient
data;

(3) recommendations for encouraging use of innovative health care applications
using information technology and systems to improve patient care and reduce the cost
of care, including applications relating to disease management and personal health
management that enable remote monitoring of patients' conditions, especially those with
chronic conditions; and

(4) other related issues as requested by the commissioner.

(b) The members of the new text begin e- new text end Health deleted text begin Information Technology and Infrastructure deleted text end
Advisory Committee shall include the commissioners, or commissioners' designees, of
health, human services, administration, and commerce and additional members to be
appointed by the commissioner to include persons representing Minnesota's local public
health agencies, licensed hospitals and other licensed facilities and providers, private
purchasers, the medical and nursing professions, health insurers and health plans, the
state quality improvement organization, academic and research institutions, consumer
advisory organizations with an interest and expertise in health information technology, and
other stakeholders as identified by the deleted text begin Health Information Technology and Infrastructure
Advisory Committee deleted text end new text begin commissioner to fulfill the requirements of section 3013, paragraph
(g) of the HITECH Act new text end .

(c) The commissioner shall prepare and issue an annual report not later than January
30 of each year outlining progress to date in implementing a statewide health information
infrastructure and recommending deleted text begin future projects deleted text end new text begin action on policy and necessary resources
to continue the promotion of adoption and effective use of health information technology new text end .

(d) Notwithstanding section 15.059, this subdivision expires June 30, 2015.

Subd. 3.

Interoperable electronic health record requirements.

deleted text begin (a) deleted text end To meet the
requirements of subdivision 1, hospitals and health care providers must meet the following
criteria when implementing an interoperable electronic health records system within their
hospital system or clinical practice setting.

new text begin (a) The electronic health record must be a qualified electronic health record.
new text end

(b) The electronic health record must be certified by the deleted text begin Certification Commission
for Healthcare Information Technology, or its successor deleted text end new text begin Office of the National Coordinator
pursuant to the HITECH Act new text end . This criterion only applies to hospitals and health care
providers deleted text begin whose practice setting is a practice setting covered by the Certification
Commission for Healthcare Information Technology certifications deleted text end new text begin only if a certified
electronic health record product for the provider's particular practice setting is available new text end .
This criterion shall be considered met if a hospital or health care provider is using an
electronic health records system that has been certified within the last three years, even if a
more current version of the system has been certified within the three-year period.

new text begin (c) The electronic health record must meet the standards established according to
section 3004 of the HITECH Act as applicable.
new text end

new text begin (d) The electronic health record must have the ability to generate information on
clinical quality measures and other measures reported under sections 4101, 4102, and
4201 of the HITECH Act.
new text end

deleted text begin (c) deleted text end new text begin (e) new text end A health care provider who is a prescriber or dispenser of deleted text begin controlled
substances deleted text end new text begin legend drugs new text end must have an electronic health record system that meets the
requirements of section 62J.497.

new text begin Subd. 4. new text end

new text begin Coordination with national HIT activities. new text end

new text begin (a) The commissioner,
in consultation with the e-Health Advisory Committee, shall update the statewide
implementation plan required under subdivision 2 and released June 2008, to be consistent
with the updated Federal HIT Strategic Plan released by the Office of the National
Coordinator in accordance with section 3001 of the HITECH Act. The statewide plan
shall meet the requirements for a plan required under section 3013 of the HITECH Act.
new text end

new text begin (b) The commissioner, in consultation with the e-Health Advisory Committee, shall
work to ensure coordination between state, regional, and national efforts to support and
accelerate efforts to effectively use health information technology to improve the quality
and coordination of health care and continuity of patient care among health care providers,
to reduce medical errors, to improve population health, to reduce health disparities, and
to reduce chronic disease. The commissioner's coordination efforts shall include but not
be limited to:
new text end

new text begin (1) assisting in the development and support of health information technology
regional extension centers established under section 3012(c) of the HITECH Act to
provide technical assistance and disseminate best practices; and
new text end

new text begin (2) providing supplemental information to the best practices gathered by regional
centers to ensure that the information is relayed in a meaningful way to the Minnesota
health care community.
new text end

new text begin (c) The commissioner, in consultation with the e-Health Advisory Committee, shall
monitor national activity related to health information technology and shall coordinate
statewide input on policy development. The commissioner shall coordinate statewide
responses to proposed federal health information technology regulations in order to ensure
that the needs of the Minnesota health care community are adequately and efficiently
addressed in the proposed regulations. The commissioner's responses may include, but
are not limited to:
new text end

new text begin (1) reviewing and evaluating any standard, implementation specification, or
certification criteria proposed by the national HIT standards committee;
new text end

new text begin (2) reviewing and evaluating policy proposed by the national HIT policy
committee relating to the implementation of a nationwide health information technology
infrastructure;
new text end

new text begin (3) monitoring and responding to activity related to the development of quality
measures and other measures as required by section 4101 of the HITECH Act. Any
response related to quality measures shall consider and address the quality efforts required
under chapter 62U; and
new text end

new text begin (4) monitoring and responding to national activity related to privacy, security, and
data stewardship of electronic health information and individually identifiable health
information.
new text end

new text begin (d) To the extent that the state is either required or allowed to apply, or designate an
entity to apply for or carry out activities and programs under section 3013 of the HITECH
Act, the commissioner of health, in consultation with the e-Health Advisory Committee
and the commissioner of human services, shall be the lead applicant or sole designating
authority. The commissioner shall make such designations consistent with the goals and
objectives of sections 62J.495 to 62J.497, and sections 62J.50 to 62J.61.
new text end

new text begin (e) The commissioner of human services shall apply for funding necessary to
administer the incentive payments to providers authorized under title IV of the American
Recovery and Reinvestment Act.
new text end

new text begin (f) The commissioner shall include in the report to the legislature information on the
activities of this subdivision and provide recommendations on any relevant policy changes
that should be considered in Minnesota.
new text end

new text begin Subd. 5. new text end

new text begin Collection of data for assessment and eligibility determination. new text end

new text begin (a)
The commissioner of health, in consultation with the commissioner of human services,
may require providers, dispensers, group purchasers, and pharmaceutical electronic data
intermediaries to submit data in a form and manner specified by the commissioner to
assess the status of adoption, effective use, and interoperability of electronic health
records for the purpose of:
new text end

new text begin (1) demonstrating Minnesota's progress on goals established by the Office of the
National Coordinator to accelerate the adoption and effective use of health information
technology established under the HITECH Act;
new text end

new text begin (2) assisting the Center for Medicare and Medicaid Services and Department of
Human Services in determining eligibility of health care professionals and hospitals
to receive federal incentives for the adoption and effective use of health information
technology under the HITECH Act or other federal incentive programs;
new text end

new text begin (3) assisting the Office of the National Coordinator in completing required
assessments of the impact of the implementation and effective use of health information
technology in achieving goals identified in the national strategic plan, and completing
studies required by the HITECH Act;
new text end

new text begin (4) providing the data necessary to assist the Office of the National Coordinator in
conducting evaluations of regional extension centers as required by the HITECH Act; and
new text end

new text begin (5) other purposes as necessary to support the implementation of the HITECH Act.
new text end

new text begin (b) The commissioner shall coordinate with the commissioner of human services
and other state agencies in the collection of data required under this section to:
new text end

new text begin (1) avoid duplicative reporting requirements;
new text end

new text begin (2) maximize efficiencies in the development of reports on state activities as
required by HITECH; and
new text end

new text begin (3) determine health professional and hospital eligibility for incentives available
under the HITECH Act.
new text end

new text begin (c) The commissioner must not collect data or publish analyses that identify, or could
potentially identify, individual patients. The commissioner must not collect individual
data in identified or de-identified form.
new text end

Sec. 2.

Minnesota Statutes 2008, section 62J.496, is amended to read:

62J.496 ELECTRONIC HEALTH RECORD SYSTEM REVOLVING
ACCOUNT AND LOAN PROGRAM.

Subdivision 1.

Account establishment.

new text begin (a) new text end An account is established to new text begin : new text end deleted text begin provide
loans to eligible borrowers to assist in financing the installation or support of an
interoperable health record system. The system must provide for the interoperable
exchange of health care information between the applicant and, at a minimum, a hospital
system, pharmacy, and a health care clinic or other physician group.
deleted text end

new text begin (1) finance the purchase of certified electronic health records or qualified electronic
health records as defined in section 62J.495, subdivision 1a;
new text end

new text begin (2) enhance the utilization of electronic health record technology, which may include
costs associated with upgrading the technology to meet the criteria necessary to be a
certified electronic health record or a qualified electronic health record;
new text end

new text begin (3) train personnel in the use of electronic health record technology; and
new text end

new text begin (4) improve the secure electronic exchange of health information.
new text end

new text begin (b) Amounts deposited in the account, including any grant funds obtained through
federal or other sources, loan repayments, and interest earned on the amounts shall be
used only for awarding loans or loan guarantees, as a source of reserve and security for
leveraged loans, or for the administration of the account.
new text end

new text begin (c) The commissioner may accept contributions to the account from private sector
entities subject to the following provisions:
new text end

new text begin (1) the contributing entity may not specify the recipient or recipients of any loan
issued under this subdivision;
new text end

new text begin (2) the commissioner shall make public the identity of any private contributor to the
loan fund, as well as the amount of the contribution provided; and
new text end

new text begin (3) the commissioner may issue letters of commendation or make other awards that
have no financial value to any such entity.
new text end

new text begin A contributing entity may not specify that the recipient or recipients of any loan use
specific products or services, nor may the contributing entity imply that a contribution is
an endorsement of any specific product or service.
new text end

new text begin (d) The commissioner may use the loan funds to reimburse private sector entities
for any contribution made to the loan fund. Reimbursement to private entities may not
exceed the principle amount contributed to the loan fund.
new text end

new text begin (e) The commissioner may use funds deposited in the account to guarantee, or
purchase insurance for, a local obligation if the guarantee or purchase would improve
credit market access or reduce the interest rate applicable to the obligation involved.
new text end

new text begin (f) The commissioner may use funds deposited in the account as a source of revenue
or security for the payment of principal and interest on revenue or bonds issued by the
state if the proceeds of the sale of the bonds will be deposited into the loan fund.
new text end

Subd. 2.

Eligibility.

(a) "Eligible borrower" means one of the following:

new text begin (1) federally qualified health centers;
new text end

deleted text begin (1) deleted text end new text begin (2) new text end community clinics, as defined under section 145.9268;

deleted text begin (2) deleted text end new text begin (3) nonprofit or local unit of government new text end hospitals deleted text begin eligible for rural hospital
capital improvement grants, as defined in section deleted text end new text begin licensed under sections 144.50
to 144.56 new text end ;

deleted text begin (3) physician clinics located in a community with a population of less than 50,000
according to United States Census Bureau statistics and outside the seven-county
metropolitan area;
deleted text end

new text begin (4) individual or small group physician practices that are focused primarily on
primary care;
new text end

deleted text begin (4) deleted text end new text begin (5) new text end nursing facilities licensed under sections 144A.01 to 144A.27; deleted text begin and
deleted text end

new text begin (6) local public health departments as defined in chapter 145A; and
new text end

deleted text begin (5) deleted text end new text begin (7) new text end other providers of health or health care services approved by the
commissioner for which interoperable electronic health record capability would improve
quality of care, patient safety, or community health.

new text begin (b) The commissioner shall administer the loan fund to prioritize support and
assistance to:
new text end

new text begin (1) critical access hospitals;
new text end

new text begin (2) federally qualified health centers;
new text end

new text begin (3) entities that serve uninsured, underinsured, and medically underserved
individuals, regardless of whether such area is urban or rural; and
new text end

new text begin (4) individual or small group practices that are primarily focused on primary care.
new text end

deleted text begin (b) To be eligible for a loan under this section, the deleted text end new text begin (c) An eligible new text end applicant must
submit a loan application to the commissioner of health on forms prescribed by the
commissioner. The application must include, at a minimum:

(1) the amount of the loan requested and a description of the purpose or project
for which the loan proceeds will be used;

(2) a quote from a vendor;

(3) a description of the health care entities and other groups participating in the
project;

(4) evidence of financial stability and a demonstrated ability to repay the loan; and

(5) a description of how the system to be financed deleted text begin interconnects deleted text end new text begin interoperates new text end or
plans in the future to deleted text begin interconnect deleted text end new text begin interoperate new text end with other health care entities and provider
groups located in the same geographical area new text begin ;
new text end

new text begin (6) a plan on how the certified electronic health record technology will be maintained
and supported over time; and
new text end

new text begin (7) any other requirements for applications included or developed pursuant to
section 3014 of the HITECH Act new text end .

Subd. 3.

Loans.

(a) The commissioner of health may make a no interest new text begin loan or
low interest new text end loan to a provider or provider group who is eligible under subdivision 2
deleted text begin on a first-come, first-served basis provided that the applicant is able to comply with this
section deleted text end new text begin consistent with the priorities established in subdivision 2 new text end . The total accumulative
loan principal must not exceed deleted text begin $1,500,000 deleted text end new text begin $3,000,000 new text end per loan. new text begin The interest rate for each
loan, if imposed, shall not exceed the current market interest rate. new text end The commissioner of
health has discretion over the size new text begin , interest rate, new text end and number of loans made. new text begin Nothing in
this section shall require the commissioner to make a loan to an eligible borrower under
subdivision 2.
new text end

(b) The commissioner of health may prescribe forms and establish an application
process and, notwithstanding section 16A.1283, may impose a reasonable nonrefundable
application fee to cover the cost of administering the loan program. Any application
fees imposed and collected under the electronic health records system revolving account
and loan program in this section are appropriated to the commissioner of health for the
duration of the loan program. new text begin The commissioner may apply for and use all federal funds
available through the HITECH Act to administer the loan program.
new text end

(c) new text begin For loans approved prior to July 1, 2009, new text end the borrower must begin repaying the
principal no later than two years from the date of the loan. Loans must be amortized no
later than six years from the date of the loan.

new text begin (d) For loans granted on January 1, 2010, or thereafter, the borrower must begin
repaying the principle no later than one year from the date of the loan. Loans must be
amortized no later than six years after the date of the loan.
new text end

deleted text begin (d) Repayments deleted text end new text begin (e) All repayments and interest paid on each loan new text end must be credited
to the account.

new text begin (f) The loan agreement shall include the assurances that borrower meets requirements
included or developed pursuant to section 3014 of the HITECH Act. The requirements
shall include, but are not limited to:
new text end

new text begin (1) submitting reports on quality measures in compliance with regulations adopted
by the federal government;
new text end

new text begin (2) demonstrating that any certified electronic health record technology purchased,
improved, or otherwise financially supported by this loan program is used to exchange
health information in a manner that, in accordance with law and standards applicable to
the exchange of information, improves the quality of health care;
new text end

new text begin (3) including a plan on how the borrower intends to maintain and support the
certified electronic health record technology over time and the resources expected to be
used to maintain and support the technology purchased with the loan; and
new text end

new text begin (4) complying with other requirements the secretary may require to use loans funds
under the HITECH Act.
new text end

Subd. 4.

Data classification.

Data collected by the commissioner of health on the
application to determine eligibility under subdivision 2 and to monitor borrowers' default
risk or collect payments owed under subdivision 3 are (1) private data on individuals as
defined in section 13.02, subdivision 12; and (2) nonpublic data as defined in section
13.02, subdivision 9. The names of borrowers and the amounts of the loans granted
are public data.

Sec. 3.

Minnesota Statutes 2008, section 62J.497, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the following terms
have the meanings given.

new text begin (a) "Backward compatible" means that the newer version of a data transmission
standard would retain, at a minimum, the full functionality of the versions previously
adopted, and would permit the successful completion of the applicable transactions with
entities that continue to use the older versions.
new text end

deleted text begin (a) deleted text end new text begin (b) new text end "Dispense" or "dispensing" has the meaning given in section 151.01,
subdivision 30. Dispensing does not include the direct administering of a controlled
substance to a patient by a licensed health care professional.

deleted text begin (b) deleted text end new text begin (c) new text end "Dispenser" means a person authorized by law to dispense a controlled
substance, pursuant to a valid prescription.

deleted text begin (c) deleted text end new text begin (d) new text end "Electronic media" has the meaning given under Code of Federal Regulations,
title 45, part 160.103.

deleted text begin (d) deleted text end new text begin (e) new text end "E-prescribing" means the transmission using electronic media of prescription
or prescription-related information between a prescriber, dispenser, pharmacy benefit
manager, or group purchaser, either directly or through an intermediary, including
an e-prescribing network. E-prescribing includes, but is not limited to, two-way
transmissions between the point of care and the dispenser new text begin and two-way transmissions
related to eligibility, formulary, and medication history information new text end .

deleted text begin (e) deleted text end new text begin (f) new text end "Electronic prescription drug program" means a program that provides for
e-prescribing.

deleted text begin (f) deleted text end new text begin (g) new text end "Group purchaser" has the meaning given in section 62J.03, subdivision 6.

deleted text begin (g) deleted text end new text begin (h) new text end "HL7 messages" means a standard approved by the standards development
organization known as Health Level Seven.

deleted text begin (h) deleted text end new text begin (i) new text end "National Provider Identifier" or "NPI" means the identifier described under
Code of Federal Regulations, title 45, part 162.406.

deleted text begin (i) deleted text end new text begin (j) new text end "NCPDP" means the National Council for Prescription Drug Programs, Inc.

deleted text begin (j) deleted text end new text begin (k) new text end "NCPDP Formulary and Benefits Standard" means the National Council for
Prescription Drug Programs Formulary and Benefits Standard, Implementation Guide,
Version 1, Release 0, October 2005.

deleted text begin (k) deleted text end new text begin (l) new text end "NCPDP SCRIPT Standard" means the National Council for Prescription
Drug Programs Prescriber/Pharmacist Interface SCRIPT Standard, Implementation
Guide Version 8, Release 1 (Version 8.1), October 2005 new text begin , or the most recent standard
adopted by the Centers for Medicare and Medicaid Services for e-prescribing under
Medicare Part D as required by section 1860D-4(e)(4)(D) of the Social Security Act, and
regulations adopted under it. The standards shall be implemented according to the Centers
for Medicare and Medicaid Services schedule for compliance. Subsequently released
versions of the NCPDP SCRIPT Standard may be used, provided that the new version
of the standard is backward compatible to the current version adopted by the Centers for
Medicare and Medicaid Services new text end .

deleted text begin (l) deleted text end new text begin (m) new text end "Pharmacy" has the meaning given in section 151.01, subdivision 2.

deleted text begin (m) deleted text end new text begin (n) new text end "Prescriber" means a licensed health care deleted text begin professional who is authorized to
prescribe a controlled substance under section deleted text end deleted text begin 152.12, subdivision 1 deleted text end deleted text begin . deleted text end new text begin practitioner, other
than a veterinarian, as defined in section 151.01, subdivision 23.
new text end

deleted text begin (n) deleted text end new text begin (o) new text end "Prescription-related information" means information regarding eligibility for
drug benefits, medication history, or related health or drug information.

deleted text begin (o) deleted text end new text begin (p) new text end "Provider" or "health care provider" has the meaning given in section 62J.03,
subdivision 8.

Sec. 4.

Minnesota Statutes 2008, section 62J.497, subdivision 2, is amended to read:

Subd. 2.

Requirements for electronic prescribing.

(a) Effective January 1, 2011,
all providers, group purchasers, prescribers, and dispensers must establish deleted text begin and deleted text end new text begin , new text end maintain new text begin ,
and use new text end an electronic prescription drug program deleted text begin that complies deleted text end new text begin . This program must comply new text end
with the applicable standards in this section for transmitting, directly or through an
intermediary, prescriptions and prescription-related information using electronic media.

(b) deleted text begin Nothing in this section requires providers, group purchasers, prescribers, or
dispensers to conduct the transactions described in this section. deleted text end If transactions described in
this section are conducted, they must be done electronically using the standards described
in this section. Nothing in this section requires providers, group purchasers, prescribers,
or dispensers to electronically conduct transactions that are expressly prohibited by other
sections or federal law.

(c) Providers, group purchasers, prescribers, and dispensers must use either HL7
messages or the NCPDP SCRIPT Standard to transmit prescriptions or prescription-related
information internally when the sender and the recipient are part of the same legal entity. If
an entity sends prescriptions outside the entity, it must use the NCPDP SCRIPT Standard
or other applicable standards required by this section. Any pharmacy within an entity
must be able to receive electronic prescription transmittals from outside the entity using
the adopted NCPDP SCRIPT Standard. This exemption does not supersede any Health
Insurance Portability and Accountability Act (HIPAA) requirement that may require the
use of a HIPAA transaction standard within an organization.

deleted text begin (d) Entities transmitting prescriptions or prescription-related information where the
prescriber is required by law to issue a prescription for a patient to a nonprescribing
provider that in turn forwards the prescription to a dispenser are exempt from the
requirement to use the NCPDP SCRIPT Standard when transmitting prescriptions or
prescription-related information.
deleted text end

Sec. 5.

Minnesota Statutes 2008, section 62J.497, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Development and use of uniform formulary exception form. new text end

new text begin (a) The
commissioner of health, in consultation with the Minnesota Administrative Uniformity
Committee, shall develop by July 1, 2009, or six weeks after enactment of this subdivision,
whichever is later, a uniform formulary exception form that allows health care providers
to request exceptions from group purchaser formularies using a uniform form. Upon
development of the form, all health care providers must submit requests for formulary
exceptions using the uniform form, and all group purchasers must accept this form from
health care providers.
new text end

new text begin (b) No later than January 1, 2011, the uniform formulary exception form must be
accessible and submitted by health care providers, and accepted and processed by group
purchasers, through secure electronic transmissions. Facsimile shall not be considered
secure electronic transmissions.
new text end

Sec. 6.

Minnesota Statutes 2008, section 62J.497, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Electronic drug prior authorization standardization and transmission.
new text end

new text begin (a) The commissioner of health, in consultation with the Minnesota e-Health Advisory
Committee and the Minnesota Administrative Uniformity Committee, shall, by February
15, 2010, identify an outline on how best to standardize drug prior authorization request
transactions between providers and group purchasers with the goal of maximizing
administrative simplification and efficiency in preparation for electronic transmissions.
new text end

new text begin (b) No later than January 1, 2011, drug prior authorization requests must be
accessible and submitted by health care providers, and accepted and processed by group
purchasers, electronically through secure electronic transmissions. Facsimile shall not be
considered electronic transmission.
new text end

Sec. 7.

new text begin [62Q.676] MEDICATION THERAPY MANAGEMENT.
new text end

new text begin A pharmacy benefit manager that provides prescription drug services must make
available medication therapy management services for enrollees taking four or more
prescriptions to treat or prevent two or more chronic medical conditions. For purposes
of this section, "medication therapy management" means the provision of the following
pharmaceutical care services by, or under the supervision of, a licensed pharmacist to
optimize the therapeutic outcomes of the patient's medications:
new text end

new text begin (1) performing a comprehensive medication review to identify, resolve, and prevent
medication-related problems, including adverse drug events;
new text end

new text begin (2) communicating essential information to the patient's other primary care
providers; and
new text end

new text begin (3) providing verbal education and training designed to enhance patient
understanding and appropriate use of the patient's medications.
new text end

new text begin Nothing in this section shall be construed to expand or modify the scope of practice
of the pharmacist as defined in section 151.01, subdivision 27.
new text end

Sec. 8.

Minnesota Statutes 2008, section 144.122, is amended to read:

144.122 LICENSE, PERMIT, AND SURVEY FEES.

(a) The state commissioner of health, by rule, may prescribe procedures and fees
for filing with the commissioner as prescribed by statute and for the issuance of original
and renewal permits, licenses, registrations, and certifications issued under authority of
the commissioner. The expiration dates of the various licenses, permits, registrations,
and certifications as prescribed by the rules shall be plainly marked thereon. Fees may
include application and examination fees and a penalty fee for renewal applications
submitted after the expiration date of the previously issued permit, license, registration,
and certification. The commissioner may also prescribe, by rule, reduced fees for permits,
licenses, registrations, and certifications when the application therefor is submitted
during the last three months of the permit, license, registration, or certification period.
Fees proposed to be prescribed in the rules shall be first approved by the Department of
Finance. All fees proposed to be prescribed in rules shall be reasonable. The fees shall be
in an amount so that the total fees collected by the commissioner will, where practical,
approximate the cost to the commissioner in administering the program. All fees collected
shall be deposited in the state treasury and credited to the state government special revenue
fund unless otherwise specifically appropriated by law for specific purposes.

(b) The commissioner may charge a fee for voluntary certification of medical
laboratories and environmental laboratories, and for environmental and medical laboratory
services provided by the department, without complying with paragraph (a) or chapter 14.
Fees charged for environment and medical laboratory services provided by the department
must be approximately equal to the costs of providing the services.

(c) The commissioner may develop a schedule of fees for diagnostic evaluations
conducted at clinics held by the services for children with disabilities program. All
receipts generated by the program are annually appropriated to the commissioner for use
in the maternal and child health program.

(d) The commissioner shall set license fees for hospitals and nursing homes that are
not boarding care homes at the following levels:

Joint Commission on Accreditation of Healthcare Organizations (JCAHO) and American Osteopathic Association (AOA) hospitals	deleted text begin $7,555 deleted text end new text begin $7,655 new text end plus deleted text begin $13 deleted text end new text begin $16 new text end per bed
Non-JCAHO and non-AOA hospitals	deleted text begin $5,180 deleted text end new text begin $5,280 new text end plus deleted text begin $247 deleted text end new text begin $250 new text end per bed
Nursing home	$183 plus $91 per bed

The commissioner shall set license fees for outpatient surgical centers, boarding care
homes, and supervised living facilities at the following levels:

Outpatient surgical centers	deleted text begin $3,349 deleted text end new text begin $3,712 new text end
Boarding care homes	$183 plus $91 per bed
Supervised living facilities	$183 plus $91 per bed.

(e) Unless prohibited by federal law, the commissioner of health shall charge
applicants the following fees to cover the cost of any initial certification surveys required
to determine a provider's eligibility to participate in the Medicare or Medicaid program:

Prospective payment surveys for hospitals	$	900
Swing bed surveys for nursing homes	$	1,200
Psychiatric hospitals	$	1,400
Rural health facilities	$	1,100
Portable x-ray providers	$	500
Home health agencies	$	1,800
Outpatient therapy agencies	$	800
End stage renal dialysis providers	$	2,100
Independent therapists	$	800
Comprehensive rehabilitation outpatient facilities	$	1,200
Hospice providers	$	1,700
Ambulatory surgical providers	$	1,800
Hospitals	$	4,200
Other provider categories or additional resurveys required to complete initial certification	Actual surveyor costs: average surveyor cost x number of hours for the survey process.

These fees shall be submitted at the time of the application for federal certification
and shall not be refunded. All fees collected after the date that the imposition of fees is not
prohibited by federal law shall be deposited in the state treasury and credited to the state
government special revenue fund.

Sec. 9.

Minnesota Statutes 2008, section 144.226, subdivision 4, is amended to read:

Subd. 4.

Vital records surcharge.

(a) In addition to any fee prescribed under
subdivision 1, there is a nonrefundable surcharge of $2 for each certified and noncertified
birth, stillbirth, or death record, and for a certification that the record cannot be found.
The local or state registrar shall forward this amount to the commissioner of finance to
be deposited into the state government special revenue fund. This surcharge shall not be
charged under those circumstances in which no fee for a birth, stillbirth, or death record is
permitted under subdivision 1, paragraph (a).

(b) Effective August 1, 2005, deleted text begin to June 30, 2009, deleted text end the surcharge in paragraph (a) deleted text begin shall
be deleted text end new text begin is new text end $4.

Sec. 10.

Minnesota Statutes 2008, section 148.6445, is amended by adding a
subdivision to read:

new text begin Subd. 2a. new text end

new text begin Duplicate license fee. new text end

new text begin The fee for a duplicate license is $25.
new text end

ARTICLE 5

HEALTH CARE

Section 1.

Minnesota Statutes 2008, section 60A.092, subdivision 2, is amended to
read:

Subd. 2.

Licensed assuming insurer.

Reinsurance is ceded to an assuming insurer
if the assuming insurer is licensed to transact insurance or reinsurance in this state. new text begin For
purposes of reinsuring any health risk, an insurer is defined under section 62A.63.
new text end

Sec. 2.

Minnesota Statutes 2008, section 62D.03, subdivision 4, is amended to read:

Subd. 4.

Application requirements.

Each application for a certificate of authority
shall be verified by an officer or authorized representative of the applicant, and shall be
in a form prescribed by the commissioner of health. Each application shall include the
following:

(a) a copy of the basic organizational document, if any, of the applicant and of
each major participating entity; such as the articles of incorporation, or other applicable
documents, and all amendments thereto;

(b) a copy of the bylaws, rules and regulations, or similar document, if any, and all
amendments thereto which regulate the conduct of the affairs of the applicant and of
each major participating entity;

(c) a list of the names, addresses, and official positions of the following:

(1) all members of the board of directors, or governing body of the local government
unit, and the principal officers and shareholders of the applicant organization; and

(2) all members of the board of directors, or governing body of the local government
unit, and the principal officers of the major participating entity and each shareholder
beneficially owning more than ten percent of any voting stock of the major participating
entity;

The commissioner may by rule identify persons included in the term "principal
officers";

(d) a full disclosure of the extent and nature of any contract or financial arrangements
between the following:

(1) the health maintenance organization and the persons listed in clause (c)(1);

(2) the health maintenance organization and the persons listed in clause (c)(2);

(3) each major participating entity and the persons listed in clause (c)(1) concerning
any financial relationship with the health maintenance organization; and

(4) each major participating entity and the persons listed in clause (c)(2) concerning
any financial relationship with the health maintenance organization;

(e) the name and address of each participating entity and the agreed upon duration of
each contract or agreement;

(f) a copy of the form of each contract binding the participating entities and the
health maintenance organization. Contractual provisions shall be consistent with the
purposes of sections 62D.01 to 62D.30, in regard to the services to be performed under the
contract, the manner in which payment for services is determined, the nature and extent
of responsibilities to be retained by the health maintenance organization, the nature and
extent of risk sharing permissible, and contractual termination provisions;

(g) a copy of each contract binding major participating entities and the health
maintenance organization. Contract information filed with the commissioner shall be
confidential and subject to the provisions of section 13.37, subdivision 1, clause (b), upon
the request of the health maintenance organization.

Upon initial filing of each contract, the health maintenance organization shall file
a separate document detailing the projected annual expenses to the major participating
entity in performing the contract and the projected annual revenues received by the entity
from the health maintenance organization for such performance. The commissioner
shall disapprove any contract with a major participating entity if the contract will result
in an unreasonable expense under section 62D.19. The commissioner shall approve or
disapprove a contract within 30 days of filing.

Within 120 days of the anniversary of the implementation of each contract, the
health maintenance organization shall file a document detailing the actual expenses
incurred and reported by the major participating entity in performing the contract in the
preceding year and the actual revenues received from the health maintenance organization
by the entity in payment for the performance;

(h) a statement generally describing the health maintenance organization, its health
maintenance contracts and separate health service contracts, facilities, and personnel,
including a statement describing the manner in which the applicant proposes to provide
enrollees with comprehensive health maintenance services and separate health services;

(i) a copy of the form of each evidence of coverage to be issued to the enrollees;

(j) a copy of the form of each individual or group health maintenance contract
and each separate health service contract which is to be issued to enrollees or their
representatives;

(k) financial statements showing the applicant's assets, liabilities, and sources of
financial support. If the applicant's financial affairs are audited by independent certified
public accountants, a copy of the applicant's most recent certified financial statement
may be deemed to satisfy this requirement;

(l) a description of the proposed method of marketing the plan, a schedule of
proposed charges, and a financial plan which includes a three-year projection of the
expenses and income and other sources of future capital;

(m) a statement reasonably describing the geographic area or areas to be served and
the type or types of enrollees to be served;

(n) a description of the complaint procedures to be utilized as required under section
62D.11;

(o) a description of the procedures and programs to be implemented to meet the
requirements of section 62D.04, subdivision 1, clauses (b) and (c) and to monitor the
quality of health care provided to enrollees;

(p) a description of the mechanism by which enrollees will be afforded an
opportunity to participate in matters of policy and operation under section 62D.06;

(q) a copy of any agreement between the health maintenance organization and
an insurer deleted text begin or deleted text end new text begin , including any new text end nonprofit health service corporation new text begin or another health
maintenance organization, new text end regarding reinsurance, stop-loss coverage, insolvency
coverage, or any other type of coverage for potential costs of health services, as authorized
in sections 62D.04, subdivision 1, clause (f), 62D.05, subdivision 3, and 62D.13;

(r) a copy of the conflict of interest policy which applies to all members of the board
of directors and the principal officers of the health maintenance organization, as described
in section 62D.04, subdivision 1, paragraph (g). All currently licensed health maintenance
organizations shall also file a conflict of interest policy with the commissioner within 60
days after August 1, 1990, or at a later date if approved by the commissioner;

(s) a copy of the statement that describes the health maintenance organization's prior
authorization administrative procedures; and

(t) other information as the commissioner of health may reasonably require to be
provided.

Sec. 3.

Minnesota Statutes 2008, section 62D.05, subdivision 3, is amended to read:

Subd. 3.

Contracts; health services.

A health maintenance organization may
contract with providers of health care services to render the services the health maintenance
organization has promised to provide under the terms of its health maintenance contracts,
may, subject to section 62D.12, subdivision 11, enter into separate prepaid dental contracts,
or other separate health service contracts, may, subject to the limitations of section
62D.04, subdivision 1, clause (f), contract with insurance companies deleted text begin and deleted text end new text begin , including
new text end nonprofit health service plan corporations new text begin or other health maintenance organizations,
new text end for insurance, indemnity or reimbursement of its cost of providing health care services
for enrollees or against the risks incurred by the health maintenance organization, may
contract with insurance companies and nonprofit health service plan corporations for
insolvency insurance coverage, and may contract with insurance companies and nonprofit
health service plan corporations to insure or cover the enrollees' costs and expenses in the
health maintenance organization, including the customary prepayment amount and any
co-payment obligations new text begin , and may contract to provide reinsurance or insolvency insurance
coverage to health insurers or nonprofit health service plan corporations new text end .

Sec. 4.

Minnesota Statutes 2008, section 62J.692, subdivision 7, is amended to read:

Subd. 7.

Transfers from the commissioner of human services.

deleted text begin (a) The amount
transferred according to section 256B.69, subdivision 5c, paragraph (a), clause (1), shall
be distributed by the commissioner annually to clinical medical education programs that
meet the qualifications of subdivision 3 based on the formula in subdivision 4, paragraph
(a) deleted text end new text begin Of the amount transferred according to section 256B.69, subdivision 5c, paragraph (a),
clauses (1) to (4), $21,714,000 shall be distributed as follows:
new text end

new text begin (1) $2,157,000 shall be distributed by the commissioner to the University of
Minnesota Board of Regents for the purposes described in sections 137.38 to 137.40;
new text end

new text begin (2) $1,035,360 shall be distributed by the commissioner to the Hennepin County
Medical Center for clinical medical education;
new text end

new text begin (3) $17,400,000 shall be distributed by the commissioner to the University of
</