Minnesota Legislature
HF 1588
1st Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
Current Version - 1st Engrossment
1.1 A bill for an act 1.2 relating to human services; providing for finance and 1.3 management; changing program provisions in life skills 1.4 and self-sufficiency; changing provisions for 1.5 children's programs; changing provisions related to 1.6 medical assistance, general assistance medical care, 1.7 personal care attendants, and TEFRA; changing 1.8 provisions for long-term care; changing provisions for 1.9 community mental health and health services; 1.10 appropriating money; amending Minnesota Statutes 1994, 1.11 sections 16B.08, subdivision 5; 62A.045; 62A.046; 1.12 62A.048; 62A.27; 62N.381, subdivisions 2, 3, and 4; 1.13 144.0721, by adding subdivisions; 144.0723, 1.14 subdivisions 1, 2, 3, 4, and 6; 144.122; 144.226, 1.15 subdivision 1; 144.562, subdivisions 2 and 4; 144.801, 1.16 subdivisions 3 and 5; 144.802; 144.803; 144.804; 1.17 144.806; 144.807; 144.808; 144.809; 144.8091; 1.18 144.8093; 144.8095; 144A.071, subdivisions 2, 3, 4a, 1.19 and by adding a subdivision; 144A.073, subdivisions 1, 1.20 2, 3, 4, 5, 8, and by adding a subdivision; 144A.33, 1.21 subdivision 3; 144B.01, subdivision 5; 144C.01, 1.22 subdivision 2; 144C.05, subdivision 1; 144C.07; 1.23 144C.08; 144C.09, subdivision 2; 144C.10; 145A.15; 1.24 147.01, subdivision 6; 157.03; 171.07, by adding a 1.25 subdivision; 245.041; 245.4871, subdivisions 12, 33a, 1.26 and by adding a subdivision; 245.4873, subdivision 6; 1.27 245.4874; 245.4875, subdivision 2, and by adding a 1.28 subdivision; 245.4878; 245.4882, subdivision 5; 1.29 245.4885, subdivision 2; 245.4886, by adding a 1.30 subdivision; 245.492, subdivisions 2, 6, 9, and 23; 1.31 245.493, subdivision 2; 245.4932, subdivisions 1, 2, 1.32 3, and 4; 245.494, subdivisions 1 and 3; 245.495; 1.33 245.496, subdivision 3, and by adding a subdivision; 1.34 245A.03, subdivision 2a; 245A.04, subdivisions 3, 3b, 1.35 7, and 9; 245A.06, subdivisions 2, 4, and by adding a 1.36 subdivision; 245A.07, subdivision 3; 245A.14, 1.37 subdivisions 6 and 7; 246.18, subdivision 4, and by 1.38 adding a subdivision; 246.23, subdivision 2; 246.56, 1.39 by adding a subdivision; 252.27, subdivisions 1, 1a, 1.40 2a, and by adding subdivisions; 252.275, subdivisions 1.41 3, 4, and 8; 252.292, subdivision 4; 252.46, 1.42 subdivisions 1, 3, 6, 17, and by adding subdivisions; 1.43 253B.091; 254A.17, subdivision 3; 254B.02, subdivision 1.44 1; 254B.05, subdivisions 1 and 4; 256.014, subdivision 1.45 1; 256.015, subdivisions 1, 2, and 7; 256.025, 1.46 subdivisions 1 and 3; 256.026; 256.034, subdivision 1; 2.1 256.045, subdivisions 3, 4, and 5; 256.12, subdivision 2.2 14; 256.73, subdivisions 2 and 3a; 256.736, 2.3 subdivisions 3 and 13; 256.74, subdivision 1, and by 2.4 adding a subdivision; 256.76, subdivision 1; 256.8711; 2.5 256.9353, subdivision 8; 256.9365; 256.9685, 2.6 subdivision 1b, and by adding subdivisions; 256.969, 2.7 subdivisions 1, 9, 10, 16, and by adding subdivisions; 2.8 256.98, subdivisions 1 and 8; 256.983, subdivision 4, 2.9 and by adding a subdivision; 256B.042, subdivision 2; 2.10 256B.055, subdivision 12; 256B.056, subdivision 4, and 2.11 by adding a subdivision; 256B.0575; 256B.059, 2.12 subdivisions 1, 3, and 5; 256B.0595, subdivisions 1, 2.13 2, 3, and 4; 256B.06, subdivision 4; 256B.0625, 2.14 subdivisions 5, 8, 8a, 13, 13a, 18, 19a, 25, 37, and 2.15 by adding subdivisions; 256B.0627, subdivisions 1, 2, 2.16 4, and 5; 256B.0628, subdivision 2, and by adding a 2.17 subdivision; 256B.0641, subdivision 1; 256B.0911, 2.18 subdivisions 2, 2a, 3, 4, and 7; 256B.0913, 2.19 subdivisions 4, 5, 8, 12, 14, and by adding a 2.20 subdivision; 256B.0915, subdivisions 2, 3, 5, and by 2.21 adding a subdivision; 256B.092, subdivision 4, and by 2.22 adding a subdivision; 256B.093, subdivisions 1, 2, 3, 2.23 and by adding a subdivision; 256B.15, subdivisions 1a, 2.24 2, and by adding a subdivision; 256B.19, subdivision 2.25 1c; 256B.431, subdivisions 2b, 2j, 15, 17, and by 2.26 adding a subdivision; 256B.432, subdivisions 1, 2, 3, 2.27 5, and 6; 256B.49, subdivision 1; 256B.501, 2.28 subdivisions 1, 3, 3c, 3g, 8, and by adding 2.29 subdivisions; 256B.69, subdivisions 4, 5, 6, 9, and by 2.30 adding subdivisions; 256D.02, subdivision 5; 256D.03, 2.31 subdivisions 3, 3b, and 4; 256D.05, subdivision 7; 2.32 256D.36, subdivision 1; 256D.385; 256D.405, 2.33 subdivision 3; 256D.425, subdivision 1, and by adding 2.34 a subdivision; 256D.435, subdivisions 1, 3, 4, 5, 6, 2.35 and by adding a subdivision; 256D.44, subdivisions 1, 2.36 2, 3, 4, 5, and 6; 256D.45, subdivision 1; 256D.46, 2.37 subdivisions 1 and 2; 256D.48, subdivision 1; 256E.08, 2.38 subdivision 8; 256E.115; 256F.01; 256F.02; 256F.03, 2.39 subdivision 5, and by adding a subdivision; 256F.04, 2.40 subdivisions 1 and 2; 256F.05, subdivisions 2, 3, 4, 2.41 5, 7, 8, and by adding a subdivision; 256F.06, 2.42 subdivisions 1, 2, and 4; 256F.09; 256H.01, 2.43 subdivisions 9 and 12; 256H.02; 256H.03, subdivisions 2.44 1, 2a, 4, 6, and by adding a subdivision; 256H.05, 2.45 subdivision 6; 256H.08; 256H.11, subdivision 1; 2.46 256H.12, subdivision 1, and by adding a subdivision; 2.47 256H.15, subdivision 1; 256H.18; 256H.20, subdivision 2.48 3a; 256I.03, subdivision 5, and by adding a 2.49 subdivision; 256I.04; 256I.05, subdivisions 1, 1a, and 2.50 5; 256I.06, subdivisions 2 and 6; 257.3571, 2.51 subdivision 1; 257.3572; 257.3577, subdivision 1; 2.52 257.55, subdivision 1; 257.57, subdivision 2; 257.62, 2.53 subdivisions 1, 5, and 6; 257.64, subdivision 3; 2.54 257.69, subdivisions 1 and 2; 393.07, subdivision 10; 2.55 447.32, subdivision 5; 518.171, subdivisions 1, 3, 4, 2.56 5, 7, and 8; 518.611, subdivisions 2 and 4; 518.613, 2.57 subdivision 7; 518.615, subdivision 3; 524.6-207; 2.58 550.37, subdivision 14; Laws 1993, First Special 2.59 Session chapter 1, article 8, section 30, subdivision 2.60 2; proposing coding for new law in Minnesota Statutes, 2.61 chapters 144; 145; 157; 245; 245A; 252; 256; and 256B; 2.62 proposing coding for new law as Minnesota Statutes, 2.63 chapters 144D; and 144E; repealing Minnesota Statutes 2.64 1994, sections 38.161; 38.162; 62C.141; 62C.143; 2.65 62D.106; 62E.04, subdivisions 9 and 10; 144.0723, 2.66 subdivision 5; 144.8097; 144A.073, subdivision 3a; 2.67 157.01; 157.02; 157.031; 157.04; 157.045; 157.05; 2.68 157.08; 157.12; 157.13; 157.14; 252.27, subdivision 2.69 2c; 252.275, subdivisions 4a and 10; 252.47; 256.851; 2.70 256.969, subdivision 24; 256B.501, subdivisions 3d, 2.71 3e, and 3f; 256D.35, subdivisions 14 and 19; 256D.36, 3.1 subdivision 1a; 256D.37; 256D.425, subdivision 3; 3.2 256D.435, subdivisions 2, 7, 8, 9, and 10; 256D.44, 3.3 subdivision 7; 256F.05, subdivisions 2a and 4a; 3.4 256F.06, subdivision 3; and 256H.03, subdivisions 2 3.5 and 5. 3.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.7 ARTICLE 1 3.8 APPROPRIATIONS 3.9 Section 1. [HUMAN SERVICES APPROPRIATIONS.] 3.10 The sums shown in the columns marked "APPROPRIATIONS" are 3.11 appropriated from the general fund, or any other fund named, to 3.12 the agencies and for the purposes specified in the following 3.13 sections of this article, to be available for the fiscal years 3.14 indicated for each purpose. The figures "1996" and "1997" where 3.15 used in this article, mean that the appropriation or 3.16 appropriations listed under them are available for the fiscal 3.17 year ending June 30, 1996, or June 30, 1997, respectively. 3.18 Where a dollar amount appears in parentheses, it means a 3.19 reduction of an appropriation. 3.20 SUMMARY BY FUND 3.21 APPROPRIATIONS BIENNIAL 3.22 1996 1997 TOTAL 3.23 General $2,416,186,000 $2,601,088,000 $5,017,274,000 3.24 State Government 3.25 Special Revenue 25,546,000 26,056,000 51,602,000 3.26 Metropolitan Landfill Contingency 3.27 Action Fund 193,000 193,000 386,000 3.28 Trunk Highway 1,513,000 1,513,000 3,026,000 3.29 Special Revenue 5,256,000 5,350,000 10,606,000 3.30 TOTAL $2,448,694,000 $2,634,200,000 $5,082,894,000 3.31 APPROPRIATIONS 3.32 Available for the Year 3.33 Ending June 30 3.34 1996 1997 3.35 Sec. 2. COMMISSIONER OF 3.36 HUMAN SERVICES 3.37 Subdivision 1. Appropriation by Fund 3.38 General Fund 3.39 2,339,272,000 2,523,000,000 3.40 Subd. 2. Finance and Management 3.41 General 4.1 22,263,000 23,455,000 4.2 [STATE TAKEOVER ACCELERATION.] 4.3 Notwithstanding Minnesota Statutes, 4.4 section 256.025, $800,000 of the funds 4.5 appropriated for fiscal year 1996 under 4.6 Minnesota Statutes, section 256.026, 4.7 shall be used to reimburse the county 4.8 share of project STRIDE case management 4.9 and work readiness employment and 4.10 training services for the first six 4.11 months of calendar year 1995. 4.12 [RECEIPTS FOR SYSTEMS PROJECTS.] 4.13 Appropriations and federal receipts for 4.14 information system projects for MAXIS, 4.15 electronic benefit system, social 4.16 services information system, child 4.17 support enforcement, and Minnesota 4.18 medicaid information system (MMIS II) 4.19 must be deposited in the state system 4.20 account authorized in Minnesota 4.21 Statutes, section 256.014. Money 4.22 appropriated for computer projects 4.23 approved by the information policy 4.24 office, funded by the legislature, and 4.25 approved by the commissioner of finance 4.26 may be transferred from one project to 4.27 another and from development to 4.28 operations as the commissioner of human 4.29 services considers necessary. Any 4.30 unexpended balance in the appropriation 4.31 for these projects does not cancel but 4.32 is available for ongoing development 4.33 and operations. 4.34 [COMMUNICATION COSTS.] The commissioner 4.35 of human services shall continue to 4.36 operate the special revenue fund 4.37 account established in Laws 1993, First 4.38 Special Session chapter 1, article 1, 4.39 section 2, subdivision 2, to manage 4.40 shared communication costs necessary 4.41 for the operation of the programs the 4.42 commissioner supervises. The 4.43 commissioner may distribute the costs 4.44 of operating and maintaining 4.45 communication systems to participants 4.46 in a manner that reflects actual system 4.47 usage. Costs may include acquisition, 4.48 licensing, insurance, maintenance, 4.49 repair, staff time, and other direct 4.50 costs as determined by the 4.51 commissioner. The commissioner may 4.52 accept on behalf of the state any gift, 4.53 bequest, devise, or personal property 4.54 of any kind or money tendered to the 4.55 state for any purpose pertaining to the 4.56 communication activities of the 4.57 department. Any money so received must 4.58 be deposited in the state communication 4.59 systems account. Money collected by 4.60 the commissioner for the use of 4.61 communication systems must be deposited 4.62 in the state communication systems 4.63 account and is appropriated to the 4.64 commissioner for purposes of this 4.65 section. 4.66 [ISSUANCE OPERATIONS CENTER.] Payments 4.67 to the commissioner of human services 5.1 from other governmental units and 5.2 private enterprises for (1) services 5.3 performed by the issuance operations 5.4 center or (2) reports generated by the 5.5 payment and eligibility systems must be 5.6 deposited in the state systems account 5.7 authorized in Minnesota Statutes, 5.8 section 256.014. These payments are 5.9 appropriated to the commissioner for 5.10 the operation of the issuance center or 5.11 system, in accordance with Minnesota 5.12 Statutes, section 256.014. 5.13 [SOCIAL SERVICES INFORMATION PROJECT.] 5.14 If the commissioner of human services 5.15 proceeds with the development and 5.16 implementation of the social services 5.17 information system (SSIS), the 5.18 commissioner shall report annually by 5.19 February 1 on the status of the project 5.20 to the chairs of the house health and 5.21 human services committee and of the 5.22 senate health care and family services 5.23 committees. This report must include 5.24 an explanation of the linkages between 5.25 the SSIS and the MAXIS and MMIS 5.26 computer systems. The SSIS project 5.27 must not result in an increase in the 5.28 permanent staff of the department of 5.29 human services. 5.30 [COUNCIL ON DISABILITY.] Of this 5.31 appropriation $200,000 is appropriated 5.32 from the general fund to the council on 5.33 disability for fiscal year 1996, for 5.34 the purposes of a grant to the Fergus 5.35 Falls Center for the Arts, Inc. to 5.36 complete renovations of a local theater 5.37 necessary to bring it into compliance 5.38 with the federal Americans with 5.39 Disabilities Act. 5.40 [PRINTING COSTS.] In order to reduce 5.41 printing costs, the commissioner of 5.42 human services shall solicit bids for 5.43 printing from inmate work programs 5.44 operated by the department of 5.45 corrections. 5.46 Subd. 3. Life Skills 5.47 Self-Sufficiency 5.48 General 5.49 64,503,000 120,872,000 5.50 [SILS TRANSFER.] (a) For the purpose of 5.51 transferring certain persons from the 5.52 semi-independent living services (SILS) 5.53 program to the home and community-based 5.54 waivered services program for persons 5.55 with mental retardation or related 5.56 conditions, the amount of funds 5.57 transferred between the SILS account or 5.58 the state community social services 5.59 account and the state medical 5.60 assistance account shall be based on 5.61 each county's participation in 5.62 transferring persons to the waivered 5.63 services program. No person for whom 5.64 these funds are transferred shall be 6.1 required to obtain a new living 6.2 arrangement, notwithstanding Minnesota 6.3 Statutes, section 252.28, subdivision 6.4 3, paragraph (4), and Minnesota Rules, 6.5 parts 9525.1800, subpart 25a, and 6.6 9525.1869, subpart 6. When supported 6.7 living services are provided to persons 6.8 for whom these funds are transferred, 6.9 the commissioner may substitute the 6.10 licensing standards of Minnesota Rules, 6.11 parts 9525.0500 to 9525.0660, for parts 6.12 9525.2000 to 9525.2140, if the services 6.13 remain nonresidential as defined in 6.14 Minnesota Statutes, section 245A.02, 6.15 subdivision 10. For the purposes of 6.16 Minnesota Statutes, chapter 256G, when 6.17 a service is provided under these 6.18 substituted licensing standards, the 6.19 status of residence of the recipient of 6.20 that service shall continue to be 6.21 considered excluded time. 6.22 (b) Contingent upon continuing federal 6.23 approval of expanding eligibility for 6.24 home and community-based services for 6.25 persons with mental retardation or 6.26 related conditions, the commissioner 6.27 shall reduce the state SILS payments to 6.28 each county by the total medical 6.29 assistance expenditures for 6.30 nonresidential services attributable to 6.31 former SILS recipients transferred by 6.32 the county to the home and 6.33 community-based services program for 6.34 persons with mental retardation or 6.35 related conditions. Of the reduced 6.36 SILS payments determined above, the 6.37 commissioner shall transfer to the 6.38 state medical assistance account an 6.39 amount equal to the nonfederal share of 6.40 the nonresidential services under the 6.41 home and community-based services for 6.42 persons with mental retardation or 6.43 related conditions. Of the remaining 6.44 reduced SILS payments, 80 percent shall 6.45 be returned to the SILS grant program 6.46 to provide additional SILS services and 6.47 20 percent shall be transferred to the 6.48 general fund. 6.49 [LOCAL PLANNING GRANTS.] Money 6.50 appropriated for local planning grants 6.51 as part of developmental disabilities 6.52 pilot programs in fiscal year 1996 does 6.53 not cancel, but is available for the 6.54 same purpose in fiscal year 1997. 6.55 [NEW ICF/MR.] For the fiscal year 6.56 ending June 30, 1996, a newly 6.57 constructed or newly established 6.58 intermediate care facility for persons 6.59 with mental retardation that is 6.60 developed and financed during that 6.61 period shall not be subject to the 6.62 equity requirements in Minnesota 6.63 Statutes, section 256B.501, subdivision 6.64 11, paragraph (d), or to Minnesota 6.65 Rules, part 9553.0060, subpart 3, item 6.66 F, provided that the provider's 6.67 interest rate does not exceed the 6.68 interest rate available through state 7.1 agency tax exempt financing. 7.2 [ICF/MR RECEIVERSHIP.] For the fiscal 7.3 year ending June 30, 1996, if a 7.4 facility which is in receivership under 7.5 Minnesota Statutes, section 245A.12 or 7.6 245A.13, is sold to an unrelated 7.7 organization: (a) the facility shall 7.8 be considered a newly established 7.9 facility for rate setting purposes, 7.10 notwithstanding any provisions to the 7.11 contrary in Minnesota Statutes, section 7.12 256B.501, subdivision 11; and (b) the 7.13 facility's historical basis for the 7.14 physical plant, land, and land 7.15 improvements for each facility must not 7.16 exceed the prior owner's aggregate 7.17 historical basis for these same assets 7.18 for each facility. The allocation of 7.19 the purchase price between land, land 7.20 improvements, and physical plant shall 7.21 be based on the real estate appraisal 7.22 using the depreciated replacement cost 7.23 method. 7.24 [CHEMICAL DEPENDENCY RATE FREEZE.] 7.25 Beginning January 1, 1996, rates for 7.26 chemical dependency treatment services 7.27 provided according to Minnesota 7.28 Statutes, chapter 254B, shall be the 7.29 same as those rates negotiated 7.30 according to Minnesota Statutes, 7.31 section 254B.03, subdivision 1, 7.32 paragraph (b), and effective January 1, 7.33 1995. Rates for vendors under 7.34 Minnesota Statutes, chapter 254B, who 7.35 are enrolled after January 1, 1995, 7.36 shall not be higher than the statewide 7.37 average rate for vendors licensed at 7.38 the same level of care. Counties and 7.39 providers shall not negotiate an 7.40 increase in rates between January 1, 7.41 1995, and December 31, 1997. 7.42 [GRH TO CSSA TRANSFER.] For the fiscal 7.43 year ending June 30, 1995, the 7.44 commissioner may transfer funds from 7.45 the group residential housing (GRH) 7.46 account to county community social 7.47 services act (CSSA) grants to provide 7.48 continuous funding for persons no 7.49 longer eligible for GRH payments for 7.50 the following reasons: they reside in 7.51 a setting with only a semi-independent 7.52 living services license; or they reside 7.53 in family foster care settings and have 7.54 become ineligible for GRH difficulty of 7.55 care payments due to receipt of mental 7.56 retardation/related conditions waivered 7.57 services. The amount to be transferred 7.58 must not exceed the amount of GRH 7.59 payments for actual residents in the 7.60 affected GRH settings during the fiscal 7.61 year 1995. The amount transferred is 7.62 to be added to the affected county's 7.63 CSSA base. This paragraph is effective 7.64 the day following final enactment. 7.65 [COUNTY MAINTENANCE-MEALS-AGING.] The 7.66 supplemental funding for nutrition 7.67 programs serving counties where 8.1 congregate and home-delivered meals 8.2 were locally financed prior to 8.3 participation in the nutrition program 8.4 of the Older Americans Act shall be 8.5 awarded at no less than the same levels 8.6 as in fiscal year 1995. 8.7 [SOCS FUNDING CARRYOVER.] Any 8.8 unexpended funds from the fiscal year 8.9 1994-1995 biennium in the SOCS 8.10 supplemental appropriation shall be 8.11 carried over to the fiscal year 8.12 1996-1997 biennium and may be used to 8.13 finance the cost of development of SOCS. 8.14 Subd. 4. Children's Program 8.15 General 8.16 20,335,000 22,170,000 8.17 [FAMILY SERVICES COLLABORATIVE.] Plans 8.18 for the expenditure of funds for family 8.19 services collaboratives must be 8.20 approved by the children's cabinet 8.21 according to criteria in Minnesota 8.22 Statutes, section 121.8355. Money 8.23 appropriated for these purposes may be 8.24 expended in either year of the 8.25 biennium. Money appropriated for 8.26 family services collaboratives is also 8.27 available for start-up grants for 8.28 children's mental health collaboratives. 8.29 [HIPPY CARRY FORWARD.] $50,000 in 8.30 unexpended money appropriated in fiscal 8.31 year 1995 for the Home Instruction 8.32 Program for Preschool Youngsters 8.33 (HIPPY) in Laws 1994, chapter 636, 8.34 article 1, section 11, does not cancel 8.35 but is available for the same purposes 8.36 in fiscal year 1996. 8.37 [COMMUNITY COLLABORATIVE MATCHING 8.38 GRANT.] Of this amount, $75,000 is 8.39 available in fiscal year 1996 for the 8.40 commissioner of human services to 8.41 provide a matching grant for community 8.42 collaborative projects for children and 8.43 youth developed by a regional 8.44 organization established under 8.45 Minnesota Statutes, section 116N.08, to 8.46 receive rural development challenge 8.47 grants. The regional organization must 8.48 include a broad cross-section of public 8.49 and private sector community 8.50 representatives to develop programs, 8.51 services or facilities to address 8.52 specific community needs of children 8.53 and youth. The regional organization 8.54 must also provide a two-to-one match of 8.55 nonstate dollars for this grant. 8.56 [INDIAN CHILD WELFARE GRANTS.] $100,000 8.57 is appropriated from the general fund 8.58 to the commissioner of human services 8.59 for the purposes of providing 8.60 compliance grants to an Indian child 8.61 welfare defense corporation, pursuant 8.62 to Minnesota Statutes, section 8.63 257.3571, subdivision 2a, to be 9.1 available until June 30, 1997. 9.2 Subd. 5. Economic Self-Sufficiency 9.3 General 9.4 311,172,000 312,922,000 9.5 [FOOD STAMP EMPLOYMENT AND TRAINING.] 9.6 Federal food stamp employment and 9.7 training funds are appropriated to the 9.8 commissioner of human services to 9.9 reimburse counties for food stamp 9.10 employment and training expenditures. 9.11 [CASH BENEFITS IN ADVANCE.] The 9.12 commissioner, with the advance approval 9.13 of the commissioner of finance, is 9.14 authorized to issue cash assistance 9.15 benefits up to two days before the 9.16 first day of each month, including two 9.17 days before the start of each state 9.18 fiscal year. Of the money appropriated 9.19 for the aid to families with dependent 9.20 children program for fiscal year 1996, 9.21 $12,000,000 is available in fiscal year 9.22 1995. If that amount is insufficient 9.23 for the costs incurred, an additional 9.24 amount of the fiscal year 1996 9.25 appropriation as needed may be 9.26 transferred with the advance approval 9.27 of the commissioner of finance. This 9.28 paragraph is effective the day 9.29 following final enactment. 9.30 [MFIP TRANSFER.] Unexpended money 9.31 appropriated for the Minnesota family 9.32 investment plan in fiscal year 1996 9.33 does not cancel but is available for 9.34 those purposes in fiscal year 1997. 9.35 [PATERNITY ESTABLISHMENT.] Federal 9.36 matching funds from the hospital 9.37 acknowledgment reimbursement program 9.38 may be retained by the commissioner to 9.39 establish paternity in child support 9.40 cases. These federal matching funds 9.41 are appropriated to the commissioner 9.42 and must be used for education and 9.43 public information concerning paternity 9.44 establishment and the prevention of 9.45 nonmarital births. 9.46 [CHILD SUPPORT INCENTIVES.] The 9.47 commissioner may transfer money 9.48 appropriated for child support 9.49 enforcement county performance 9.50 incentives for fiscal years 1996 and 9.51 1997 between county performance 9.52 incentive accounts. Unexpended money 9.53 in fiscal year 1996 does not cancel but 9.54 is available for county performance 9.55 incentives in fiscal year 1997. 9.56 [PROGRAM INTEGRITY.] Unexpended money 9.57 appropriated for program integrity 9.58 initiatives in fiscal year 1996 does 9.59 not cancel but is available for this 9.60 purpose in fiscal year 1997. 9.61 [GA STANDARD.] The commissioner shall 10.1 set the monthly standard of assistance 10.2 for general assistance units consisting 10.3 of an adult recipient who is childless 10.4 and unmarried or living apart from his 10.5 or her parents or a legal guardian at 10.6 $203. 10.7 [AFDC SUPPLEMENTARY GRANTS.] Of the 10.8 appropriation for aid to families with 10.9 dependent children, the commissioner 10.10 shall provide supplementary grants not 10.11 to exceed $200,000 a year for aid to 10.12 families with dependent children. The 10.13 commissioner shall include the 10.14 following costs in determining the 10.15 amount of the supplementary grants: 10.16 major home repairs, repair of major 10.17 home appliances, utility recaps, 10.18 supplementary dietary needs not covered 10.19 by medical assistance, and replacements 10.20 of furnishings and essential major 10.21 appliances. 10.22 [NEW CHANCE.] Of this appropriation, 10.23 $100,000 each year is for a grant to 10.24 the New Chance demonstration project 10.25 that provides comprehensive services to 10.26 young AFDC recipients who became 10.27 pregnant as teenagers and dropped out 10.28 of high school. The commissioner shall 10.29 provide an annual report on the 10.30 progress of the demonstration project, 10.31 including specific data on participant 10.32 outcomes in comparison to a control 10.33 group that received no services. The 10.34 commissioner shall also include 10.35 recommendations on whether strategies 10.36 or methods that have proven successful 10.37 in the demonstration project should be 10.38 incorporated into the STRIDE employment 10.39 program for AFDC recipients. 10.40 [MN ENABL.] Money is appropriated to 10.41 the commissioner of human services in 10.42 accordance with this paragraph, to be 10.43 transferred to the commissioner of 10.44 health during the fiscal year ending 10.45 June 30, 1997, for the development and 10.46 implementation of the ENABL program. 10.47 The money to be transferred shall be 10.48 from that portion of the state share of 10.49 child support enforcement collections 10.50 received under section 256.74, 10.51 subdivision 5, in fiscal years 1996 and 10.52 1997, which exceeds the amount of 10.53 collections taken as AFDC savings in 10.54 the working papers of the house and 10.55 senate budget committees for the 10.56 biennium ending June 30, 1997. The 10.57 commissioner shall not transfer more 10.58 than half of the excess collections, 10.59 nor more than $500,000 to the ENABL 10.60 program. 10.61 Subd. 6. Health Care 10.62 General 10.63 1,666,448,000 1,784,546,000 10.64 Notwithstanding Minnesota Statutes, 11.1 section 256.969, subdivisions 2, 2b, 11.2 2c, and 9, for admissions under the 11.3 general assistance medical care program 11.4 occurring on or after July 1, 1995, the 11.5 disproportionate population adjustment, 11.6 the relative values of the diagnostic 11.7 categories, and each hospital's 11.8 inpatient rates under the general 11.9 assistance medical care program, 11.10 excluding rehabilitation hospitals and 11.11 rehabilitation distinct part rates, 11.12 shall be established at the levels in 11.13 effect on December 31, 1994. These 11.14 rates shall be increased by 7.55 11.15 percent. Rates under the general 11.16 assistance medical care program shall 11.17 not be rebased to more current data on 11.18 January 1, 1997. 11.19 [PREADMISSION SCREENING TRANSFER.] 11.20 Effective the day following final 11.21 enactment, up to $40,000 of the 11.22 appropriation for preadmission 11.23 screening and alternative care for 11.24 fiscal year 1995 may be transferred to 11.25 the health care administration account 11.26 to pay the state's share of county 11.27 claims for conducting nursing home 11.28 assessments for persons with mental 11.29 illness or mental retardation as 11.30 required by Public Law Number 100-203. 11.31 [ALTERNATIVE CARE TRANSFER.] Any money 11.32 allocated to the alternative care 11.33 program that is not spent for the 11.34 purposes indicated does not cancel but 11.35 shall be transferred to the medical 11.36 assistance account. 11.37 [PREADMISSION SCREENING RATE.] The 11.38 preadmission screening payment to all 11.39 counties shall continue at the payment 11.40 amount in effect for fiscal year 1995. 11.41 [PAS/AC APPROPRIATION.] Money 11.42 appropriated for preadmission screening 11.43 and the alternative care program for 11.44 fiscal year 1997 may be used for these 11.45 purposes in fiscal year 1996. 11.46 [SAIL TRANSFER.] Appropriations for 11.47 administrative costs associated with 11.48 the senior's agenda for independent 11.49 living (SAIL) program may be 11.50 transferred to SAIL grants as the 11.51 commissioner determines necessary to 11.52 facilitate the delivery of the program. 11.53 [ADDITIONAL WAIVERED SERVICES.] The 11.54 commissioner shall seek the necessary 11.55 amendments to home and community-based 11.56 waiver programs to provide, to the 11.57 extent possible, services to persons no 11.58 longer eligible to receive personal 11.59 care assistant services due to the 11.60 restructuring of that program. After 11.61 serving persons moved from the personal 11.62 care assistant program to a home and 11.63 community-based waiver program, any 11.64 additional allocations made available 11.65 due to these requests for additional 12.1 home and community-based services may 12.2 be directed to persons eligible for 12.3 home and community-based services who 12.4 were receiving personal care assistant 12.5 services prior to the restructuring of 12.6 that program. After serving persons 12.7 moved to home and community-based 12.8 services, the commissioner may transfer 12.9 any remaining additional funds made 12.10 available for alternative services for 12.11 these persons between the medical 12.12 assistance grant and mental health 12.13 grant accounts as necessary in order to 12.14 serve people with mental health needs. 12.15 [CONSUMER SATISFACTION SURVEY.] Any 12.16 federal matching money received through 12.17 the medical assistance program for the 12.18 consumer satisfaction survey is 12.19 appropriated to the commissioner for 12.20 this purpose. The commissioner may 12.21 expend the money appropriated for the 12.22 consumer satisfaction survey in either 12.23 year of the biennium. 12.24 [LONG-TERM CARE OPTIONS PROJECT.] 12.25 Federal funds received by the 12.26 commissioner of human services for the 12.27 long-term care options project may be 12.28 transferred among object of expenditure 12.29 classifications as the commissioner 12.30 determines to be necessary for the 12.31 implementation of the project. 12.32 [SURCHARGE COMPLIANCE.] In the event 12.33 that federal financial participation in 12.34 the Minnesota medical assistance 12.35 program is reduced as a result of a 12.36 determination that Minnesota is out of 12.37 compliance with Public Law Number 12.38 102-234 or its implementing regulations 12.39 or with any other federal law designed 12.40 to restrict provider tax programs or 12.41 intergovernmental transfers, the 12.42 commissioner shall appeal the 12.43 determination to the fullest extent 12.44 permitted by law and may ratably reduce 12.45 all medical assistance and general 12.46 assistance medical care payments to 12.47 providers in order to eliminate any 12.48 shortfall resulting from the reduced 12.49 federal funding. Any amount later 12.50 recovered through the appeals process 12.51 shall be used to reimburse providers 12.52 for any ratable reductions taken. 12.53 [MANAGED CARE.] For the biennium ending 12.54 June 30, 1997, the nonfederal share of 12.55 the Prepaid Medical Assistance Program 12.56 funds, which have been appropriated to 12.57 fund county managed care advocacy and 12.58 enrollment operating costs, shall be 12.59 disbursed as grants using either a 12.60 reimbursement or block grant mechanism. 12.61 [COMPULSIVE GAMBLING.] (a) Of the 1995 12.62 appropriation for the compulsive 12.63 gambling program under Laws 1994, 12.64 chapter 633, article 8, section 8, 12.65 subdivision 1, up to $175,000 does not 12.66 cancel but shall remain available for 13.1 the development and implementation of 13.2 outcome evaluation, treatment 13.3 effectiveness research in the biennium 13.4 ending June 30, 1997. 13.5 (b) Only contributions to the 13.6 compulsive gambling program may be 13.7 carried forward between fiscal years or 13.8 from biennium to biennium. 13.9 (c) Paragraphs (a) and (b) are 13.10 effective the day following final 13.11 enactment. 13.12 [HOSPITAL CONVERSION.] Of this sum, the 13.13 commissioner of health shall provide 13.14 $25,000 to a 28-bed hospital located in 13.15 Chisago county, to enable that facility 13.16 to plan for closure and conversion, in 13.17 partnership with other entities, in 13.18 order to offer outpatient and emergency 13.19 services at the site. 13.20 [REPORT ON ADMINISTRATIVE USE OF SENIOR 13.21 NUTRITION FUNDS.] The division of aging 13.22 and adult services in the department of 13.23 human services shall prepare a report 13.24 on federal and state funding for senior 13.25 nutrition programs. The report shall 13.26 include information on the most recent 13.27 five federal and state fiscal years for 13.28 which data is available, including 13.29 information on amounts used for 13.30 administrative purposes by the 13.31 Minnesota board on aging and area 13.32 agencies on aging. The report shall 13.33 examine funding levels for senior 13.34 nutrition programs in all of the 13.35 regions of the state to determine if 13.36 funding has kept pace with local needs 13.37 and whether there has been any cost 13.38 shifting to local government units. 13.39 The report: (1) shall include 13.40 information on the number of seniors 13.41 served in each nutrition program; and 13.42 (2) shall examine transportation and 13.43 other costs associated with the 13.44 programs; and (3) shall investigate 13.45 options for other services of funding. 13.46 The report shall be presented to the 13.47 legislature by February 16, 1996. 13.48 Subd. 7. Community Mental Health 13.49 and State-Operated Services 13.50 General 13.51 254,551,000 259,035,000 13.52 [RELOCATIONS FROM FARIBAULT.] Of this 13.53 appropriation, $162,000 in fiscal year 13.54 1996 and $37,000 in fiscal year 1997 13.55 are for grants to counties for 13.56 discharge planning related to persons 13.57 with mental retardation or related 13.58 conditions being relocated from the 13.59 Faribault regional center to community 13.60 services. 13.61 [TRANSFERS TO MOOSE LAKE.] 13.62 Notwithstanding Minnesota Statutes, 14.1 sections 253B.18, subdivisions 4 and 6, 14.2 and 253B.185, subdivision 2, with the 14.3 establishment of the Minnesota sexual 14.4 psychopathic personality treatment 14.5 center, the commissioner is authorized 14.6 to transfer any person committed as a 14.7 psychopathic personality, sexual 14.8 psychopathic personality, or sexually 14.9 dangerous person, between the Minnesota 14.10 security hospital and the facility at 14.11 Moose Lake. 14.12 [RTC CHEMICAL DEPENDENCY PROGRAMS.] 14.13 When the operations of the regional 14.14 treatment center chemical dependency 14.15 fund created in Minnesota Statutes, 14.16 section 246.18, subdivision 2, are 14.17 impeded by projected cash deficiencies 14.18 resulting from delays in the receipt of 14.19 grants, dedicated income, or other 14.20 similar receivables, and when the 14.21 deficiencies would be corrected within 14.22 the budget period involved, the 14.23 commissioner of finance may transfer 14.24 general fund cash reserves into this 14.25 account as necessary to meet cash 14.26 demands. The cash flow transfers must 14.27 be returned to the general fund in the 14.28 fiscal year that the transfer was 14.29 made. Any interest earned on general 14.30 fund cash flow transfers accrues to the 14.31 general fund, and not to the regional 14.32 treatment center chemical dependency 14.33 fund. 14.34 [INFRASTRUCTURE REINVESTMENT.] $750,000 14.35 of the savings attributable to the 14.36 downsizing of the regional treatment 14.37 center shall be used by the 14.38 commissioner of human services for the 14.39 biennium ending June 30, 1997, for 14.40 grant funds to a local unit of 14.41 government for the development of 14.42 infrastructure, planning for 14.43 redevelopment, and to provide training 14.44 for workers dislocated by the 14.45 downsizing of a regional treatment 14.46 center. 14.47 [CAMP.] Money is appropriated from the 14.48 mental health special projects account 14.49 for adults and children with mental 14.50 illness from across the state, for a 14.51 camping program which utilizes the 14.52 Boundary Waters Canoe Area and is 14.53 cooperatively sponsored by client 14.54 advocacy, mental health treatment, and 14.55 outdoor recreation agencies. 14.56 [IMD DOWNSIZING FLEXIBILITY.] If a 14.57 county presents a budget-neutral plan 14.58 for a net reduction in the number of 14.59 institution for mental disease (IMD) 14.60 beds funded under group residential 14.61 housing, the commissioner may transfer 14.62 the net savings from group residential 14.63 housing and general assistance medical 14.64 care to medical assistance and mental 14.65 health grants to provide appropriate 14.66 services in non-IMD settings. 15.1 [REPAIRS AND BETTERMENTS.] The 15.2 commissioner may transfer unencumbered 15.3 appropriation balances between fiscal 15.4 years for the state residential 15.5 facilities repairs and betterments 15.6 account and special equipment. 15.7 [PROJECT LABOR.] Wages for project 15.8 labor may be paid by the commissioner 15.9 of human services out of repairs and 15.10 betterments money if the individual is 15.11 to be engaged in a construction project 15.12 or a repair project of short term and 15.13 nonrecurring nature. Compensation for 15.14 project labor shall be based on the 15.15 prevailing wage rates, as defined in 15.16 Minnesota Statutes, section 177.42, 15.17 subdivision 6. Project laborers are 15.18 excluded from the provisions of 15.19 Minnesota Statutes, sections 43A.22 to 15.20 43A.30, and shall not be eligible for 15.21 state-paid insurance and benefits. 15.22 Sec. 3. COMMISSIONER OF HEALTH 15.23 Subdivision 1. Total 15.24 Appropriation 57,008,000 57,530,000 15.25 Summary by Fund 15.26 General 38,103,000 38,100,000 15.27 Metropolitan Landfill 15.28 Contingency Action Fund 193,000 193,000 15.29 State Government 15.30 Special Revenue 17,191,000 17,716,000 15.31 Trunk Highway 1,513,000 1,513,000 15.32 Special Revenue 8,000 8,000 15.33 [LANDFILL CONTINGENCY.] The 15.34 appropriation from the metropolitan 15.35 landfill contingency action fund is for 15.36 monitoring well water supplies and 15.37 conducting health assessments in the 15.38 metropolitan area. 15.39 [TRUNK HIGHWAY FUND.] The appropriation 15.40 from the trunk highway fund is for 15.41 emergency medical services activities. 15.42 Subd. 2. Health 15.43 Systems Development 28,012,000 27,893,000 15.44 Summary by Fund 15.45 General 27,583,000 27,463,000 15.46 State Government 15.47 Special Revenue 429,000 430,000 15.48 [WIC TRANSFERS.] General fund 15.49 appropriations for the women, infants, 15.50 and children food supplement program 15.51 (WIC) are available for either year of 15.52 the biennium. Transfers of 15.53 appropriations between fiscal years 15.54 must be for the purpose of maximizing 15.55 federal funds or minimizing 16.1 fluctuations in the number of 16.2 participants. 16.3 [NURSING HOME RESIDENTS EDUCATION.] Any 16.4 efforts undertaken by the Minnesota 16.5 departments of health or human services 16.6 to conduct periodic education programs 16.7 for nursing home residents shall build 16.8 on and be coordinated with the resident 16.9 and family advisory council education 16.10 program established in Minnesota 16.11 Statutes, section 144A.33. 16.12 [MATERNAL AND CHILD HEALTH.] In the 16.13 event that Minnesota is required to 16.14 comply with the provision in the 16.15 federal maternal and child health block 16.16 grant law, which requires 30 percent of 16.17 the allocation to be spent on primary 16.18 services for children, federal funds 16.19 allocated to the commissioner of health 16.20 under Minnesota Statutes, section 16.21 145.882, subdivision 2, may be 16.22 transferred to the commissioner of 16.23 human services for the purchase of 16.24 primary services for children covered 16.25 by MinnesotaCare. The commissioner of 16.26 human services shall transfer an equal 16.27 amount of the money appropriated for 16.28 MinnesotaCare to the commissioner of 16.29 health to assure access to quality 16.30 child health services under Minnesota 16.31 Statutes, section 145.88. 16.32 [CARRYOVER.] General fund 16.33 appropriations for treatment services 16.34 in the services for children with 16.35 special health care needs program are 16.36 available for either year of the 16.37 biennium. 16.38 Subd. 3. Health Quality 16.39 Assurance 8,178,000 8,559,000 16.40 Summary by Fund 16.41 General 1,135,000 1,135,000 16.42 State Government 16.43 Special Revenue 5,612,000 5,993,000 16.44 Trunk Highway 1,431,000 1,431,000 16.45 Subd. 4. Health Protection 16,765,000 16,861,000 16.46 [LEAD ABATEMENT.] $200,000 is 16.47 appropriated from the general fund to 16.48 the commissioner of health for the 16.49 biennium ending June 30, 1997, for the 16.50 purpose of administering lead abatement 16.51 activities. Of this amount, $25,000 16.52 shall be used for the purposes of 16.53 lead-safe housing, and $25,000 shall be 16.54 used for the purposes of lead cleanup 16.55 equipment. 16.56 Summary by Fund 16.57 General 6,899,000 6,895,000 16.58 State Government 17.1 Special Revenue 9,687,000 9,787,000 17.2 Metropolitan Landfill 17.3 Contingency Action 17.4 Fund 171,000 171,000 17.5 Special Revenue 8,000 8,000 17.6 Subd. 5. Management and 17.7 Support Services 4,012,000 4,176,000 17.8 Summary by Fund 17.9 General 2,445,000 2,566,000 17.10 Metropolitan Landfill 17.11 Contingency Action Fund 22,000 22,000 17.12 Trunk Highway 82,000 82,000 17.13 State Government 17.14 Special Revenue 1,463,000 1,463,000 17.15 Sec. 4. VETERANS NURSING 17.16 HOMES BOARD 17,966,000 18,643,000 17.17 [SPECIAL REVENUE ACCOUNT.] The general 17.18 fund appropriations made to the 17.19 veterans homes board shall be 17.20 transferred to a veterans homes special 17.21 revenue account in the special revenue 17.22 fund in the same manner as other 17.23 receipts are deposited in accordance 17.24 with Minnesota Statutes, section 17.25 198.34, and are appropriated to the 17.26 veterans homes board of directors for 17.27 the operation of board facilities and 17.28 programs. 17.29 [SETTING THE COST OF CARE.] The 17.30 veterans homes board may set the cost 17.31 of care at the Silver Bay and Luverne 17.32 facilities based on the cost of average 17.33 skilled nursing care provided to 17.34 residents of the Minneapolis veterans 17.35 home for fiscal year 1996. 17.36 [ROOMS WITH MORE THAN FOUR BEDS.] (a) 17.37 Until June 30, 1996, the commissioner 17.38 of health shall not apply the 17.39 provisions of Minnesota Statutes, 17.40 section 144.55, subdivision 6, 17.41 paragraph (b), to the Minnesota 17.42 veterans home at Hastings. 17.43 (b) The veterans homes board may not 17.44 admit residents into the domiciliary 17.45 beds at the Minnesota veterans home at 17.46 Hastings before October 1, 1995. 17.47 [LICENSED CAPACITY.] The department of 17.48 health shall not reduce the licensed 17.49 bed capacity for the Minneapolis 17.50 veterans home pending completion of the 17.51 project authorized by Laws 1990, 17.52 chapter 610, article 1, section 9, 17.53 subdivision 3, unless the federal grant 17.54 for the project is not awarded. 17.55 [VETERANS NURSING HOMES BOARD; 17.56 ALLOWANCE FOR FOOD.] The allowance for 18.1 food may be adjusted annually to 18.2 reflect changes in the producer price 18.3 index, as prepared by the United States 18.4 Bureau of Labor Statistics, with the 18.5 approval of the commissioner of 18.6 finance. Adjustments for fiscal year 18.7 1996 and fiscal year 1997 must be based 18.8 on the June 1994 and June 1995 producer 18.9 price index respectively, but the 18.10 adjustment must be prorated if it would 18.11 require money in excess of the 18.12 appropriation. 18.13 [FERGUS FALLS.] Of this appropriation, 18.14 if a federal grant for the construction 18.15 of the Fergus Falls veterans home is 18.16 received before the start of the 1996 18.17 legislative session, the veterans homes 18.18 board of directors may use up to 18.19 $150,000 to fund positions and support 18.20 services to coordinate and oversee the 18.21 construction of the home and to begin 18.22 planning for the opening of the 18.23 facility. 18.24 Sec. 5. HEALTH-RELATED BOARDS 18.25 Subdivision 1. Total 18.26 Appropriation 8,355,000 8,340,000 18.27 [SPECIAL REVENUE FUND.] The 18.28 appropriations in this section are from 18.29 the state government special revenue 18.30 fund. 18.31 [NO SPENDING IN EXCESS OF REVENUES.] 18.32 The commissioner of finance shall not 18.33 permit the allotment, encumbrance, or 18.34 expenditure of money appropriated in 18.35 this section in excess of the 18.36 anticipated biennial revenues from fees 18.37 collected by the boards. Neither this 18.38 provision nor Minnesota Statutes, 18.39 section 214.06, applies to transfers 18.40 from the general contingent account, if 18.41 the amount transferred does not exceed 18.42 the amount of surplus revenue 18.43 accumulated by the transferee during 18.44 the previous five years. 18.45 Subd. 2. Board of Chiropractic 18.46 Examiners 309,000 313,000 18.47 Subd. 3. Board of Dentistry 698,000 708,000 18.48 Subd. 4. Board of Dietetic 18.49 and Nutrition Practice 63,000 64,000 18.50 Subd. 5. Board of Marriage and 18.51 Family Therapy 95,000 96,000 18.52 Subd. 6. Board of Medical 18.53 Practice 3,204,000 3,204,000 18.54 Subd. 7. Board of Nursing 1,710,000 1,714,000 18.55 [BOARD OF NURSING.] Of this 18.56 appropriation from the state government 18.57 special revenue fund, $548,000 the 18.58 first year and $295,000 the second year 18.59 is to implement the discipline and 19.1 licensing systems project as 19.2 recommended by the Information Policy 19.3 Office. 19.4 Subd. 8. Board of Nursing 19.5 Home Administrators 182,000 186,000 19.6 Subd. 9. Board of Optometry 78,000 79,000 19.7 Subd. 10. Board of Pharmacy 900,000 906,000 19.8 Subd. 11. Board of Podiatry 31,000 32,000 19.9 Subd. 12. Board of Psychology 393,000 396,000 19.10 Subd. 13. Board of Social Work 550,000 491,000 19.11 Subd. 14. Board of Veterinary 19.12 Medicine 142,000 151,000 19.13 Sec. 6. COUNCIL ON DISABILITY 675,000 681,000 19.14 Sec. 7. OMBUDSMAN FOR MENTAL 19.15 HEALTH AND MENTAL RETARDATION 1,132,000 1,097,000 19.16 Sec. 8. OMBUDSPERSON 19.17 FOR FAMILIES 133,000 137,000 19.18 Sec. 9. TRANSFERS. 19.19 Subdivision 1. Entitlement programs 19.20 (a) Transfers in fiscal year 1995 19.21 Effective the day following final 19.22 enactment, the commissioner of human 19.23 services may transfer unencumbered 19.24 appropriation balances for fiscal year 19.25 1995 among the aid to families with 19.26 dependent children, aid to families 19.27 with dependent children child care, 19.28 Minnesota family investment plan, 19.29 general assistance, general assistance 19.30 medical care, medical assistance, 19.31 Minnesota supplemental aid, group 19.32 residential housing and work readiness 19.33 programs, and the entitlement portion 19.34 of the chemical dependency consolidated 19.35 treatment fund, with the approval of 19.36 the commissioner of finance after 19.37 notification of the chair of the senate 19.38 health care and family services finance 19.39 division and the chair of the house of 19.40 representatives health and human 19.41 services finance division. 19.42 (b) Transfers of unencumbered 19.43 entitled grant and aid appropriations 19.44 The commissioner of human services, 19.45 with the approval of the commissioner 19.46 of finance, and after notification of 19.47 the chair of the senate health care and 19.48 family services finance division and 19.49 the chair of the house of 19.50 representatives health and human 19.51 services finance division, may transfer 19.52 unencumbered appropriation balances for 19.53 the biennium ending June 30, 1997, 19.54 within fiscal years among the aid to 19.55 families with dependent children, aid 20.1 to families with dependent children 20.2 child care, Minnesota family investment 20.3 plan, general assistance, general 20.4 assistance medical care, medical 20.5 assistance, Minnesota supplemental aid, 20.6 group residential housing, and work 20.7 readiness programs, and the entitlement 20.8 portion of the chemical dependency 20.9 consolidated treatment fund, and 20.10 between fiscal years of the biennium. 20.11 Subd. 2. Human Services 20.12 (a) Approval Required 20.13 Transfers may be made by the 20.14 commissioner of human services to 20.15 salary accounts, and unencumbered 20.16 salary money may be transferred to the 20.17 next fiscal year, in order to avoid 20.18 layoffs, with the advance approval of 20.19 the commissioner of finance and upon 20.20 notification of the chairs of the 20.21 senate health care and family services 20.22 finance division and the house of 20.23 representatives health and human 20.24 services finance division. Amounts 20.25 transferred to fiscal year 1997 shall 20.26 not increase the base funding level for 20.27 the 1998-1999 appropriation. The 20.28 commissioner shall not transfer money 20.29 to or from the object of expenditure 20.30 "grants and aid" without the written 20.31 approval of the governor after 20.32 consulting with the legislative 20.33 advisory commission. 20.34 (b) Transfers of Unencumbered 20.35 Appropriations 20.36 Nonsalary administrative money may be 20.37 transferred within the department of 20.38 human services as the commissioner 20.39 considers necessary, with the advance 20.40 approval of the commissioner of 20.41 finance. The commissioner shall inform 20.42 the chairs of the health and human 20.43 services finance division of the house 20.44 of representatives and the health care 20.45 and family services division of the 20.46 senate quarterly about transfers made 20.47 under this provision. 20.48 Subd. 3. Health 20.49 (a) Approval Required 20.50 Transfers may be made by the 20.51 commissioner of health to salary 20.52 accounts, and unencumbered salary money 20.53 may be transferred to the next fiscal 20.54 year, in order to avoid layoffs, with 20.55 the advance approval of the 20.56 commissioner of finance and upon 20.57 notification of the chairs of the 20.58 senate health care and family services 20.59 finance division and the house of 20.60 representatives health and human 20.61 services finance division. Amounts 20.62 transferred to fiscal year 1997 shall 20.63 not increase the base funding level for 21.1 the 1998-1999 appropriation. The 21.2 commissioner shall not transfer money 21.3 to or from the object of expenditure 21.4 "grants and aid" without the written 21.5 approval of the governor after 21.6 consulting with the legislative 21.7 advisory commission. 21.8 (b) Transfers of Unencumbered 21.9 Appropriations 21.10 Nonsalary administrative money may be 21.11 transferred within the department of 21.12 health as the commissioner considers 21.13 necessary, with the advance approval of 21.14 the commissioner of finance. The 21.15 commissioner of health shall inform the 21.16 chairs of the health and human services 21.17 finance division of the house of 21.18 representatives and the health care and 21.19 family services division of the senate 21.20 quarterly about transfers made under 21.21 this provision. 21.22 Subd. 4. Veterans Nursing Homes Board 21.23 (a) Approval Required 21.24 Transfers may be made by the veterans 21.25 nursing homes board to salary accounts, 21.26 and unencumbered salary money may be 21.27 transferred to the next fiscal year, in 21.28 order to avoid layoffs, with the 21.29 advance approval of the commissioner of 21.30 finance and upon notification of the 21.31 chairs of the senate health care and 21.32 family services finance division and 21.33 the house of representatives health and 21.34 human services finance division. 21.35 Amounts transferred to fiscal year 1997 21.36 shall not increase the base funding 21.37 level for the 1998-1999 appropriation. 21.38 The board shall not transfer money to 21.39 or from the object of expenditure 21.40 "grants and aid" without the written 21.41 approval of the governor after 21.42 consulting with the legislative 21.43 advisory commission. 21.44 (b) Transfers of Unencumbered 21.45 Appropriations 21.46 Nonsalary administrative money may be 21.47 transferred within the programs 21.48 operated by the veterans nursing homes 21.49 board as the board considers necessary, 21.50 with the advance approval of the 21.51 commissioner of finance. The board 21.52 shall inform the chairs of the health 21.53 and human services finance division of 21.54 the house of representatives and the 21.55 health care and family services 21.56 division of the senate quarterly about 21.57 transfers made under this provision. 21.58 Subd. 5. Transfer 21.59 Funding appropriated by the legislature 21.60 may not be transferred to a different 21.61 department than that specified by the 21.62 legislature without legislative 22.1 authority. 22.2 Sec. 10. PROVISIONS 22.3 (a) Money appropriated to the 22.4 commissioner of human services for the 22.5 purchase of provisions within the item 22.6 "current expense" must be used solely 22.7 for that purpose. Money provided and 22.8 not used for the purchase of provisions 22.9 must be canceled into the fund from 22.10 which appropriated, except that money 22.11 provided and not used for the purchase 22.12 of provisions because of population 22.13 decreases may be transferred and used 22.14 for the purchase of drugs and medical 22.15 and hospital supplies and equipment 22.16 with written approval of the governor 22.17 after consultation with the legislative 22.18 advisory commission. 22.19 (b) For fiscal year 1996 the allowance 22.20 for food may be adjusted to the 22.21 equivalent of the 75th percentile of 22.22 the comparable raw food costs for 22.23 community nursing homes as reported to 22.24 the commissioner of human services. 22.25 For fiscal year 1997 an adjustment may 22.26 be made to reflect the annual change in 22.27 the United States Bureau of Labor 22.28 Statistics producer price index as of 22.29 June 1996 with the approval of the 22.30 commissioner of finance. The 22.31 adjustments for either year must be 22.32 prorated if they would require money in 22.33 excess of this appropriation. 22.34 Sec. 11. TELECOMMUNICATION 22.35 ACCESS FOR COMMUNICATION-IMPAIRED 22.36 PERSONS BOARD 5,248,000 5,342,000 22.37 This appropriation is from the special 22.38 revenue fund. 22.39 Sec. 12. CARRYOVER LIMITATION 22.40 None of the appropriations in this act 22.41 which are allowed to be carried forward 22.42 from fiscal year 1996 to fiscal year 22.43 1997 shall become part of the base 22.44 level funding for the 1997-1999 22.45 biennial budget, unless specifically 22.46 directed by the legislature. 22.47 Sec. 13. SUNSET OF UNCODIFIED LANGUAGE 22.48 All uncodified language contained in 22.49 this article expires on June 30, 1997, 22.50 unless a different expiration is 22.51 explicit. 22.52 ARTICLE 2 22.53 HUMAN SERVICES ADMINISTRATION 22.54 Section 1. Minnesota Statutes 1994, section 16B.08, 22.55 subdivision 5, is amended to read: 22.56 Subd. 5. [FEDERALGENERAL SERVICES ADMINISTRATIONAGENCY 23.1 PRICE SCHEDULES.] Notwithstanding anything in this chapter to 23.2 the contrary, the commissioner may, instead of soliciting bids, 23.3 contract for purchases with suppliers who have published 23.4 schedules of prices effective for sales tothe General Services23.5Administrationany federal agency of the United States. These 23.6 contracts may be entered into, regardless of the amount of the 23.7 purchase price, if the commissioner considers them advantageous 23.8 and if the purchase price of all the commodities purchased under 23.9 the contract do not exceed the price specified by the schedule. 23.10 Sec. 2. Minnesota Statutes 1994, section 171.07, is 23.11 amended by adding a subdivision to read: 23.12 Subd. 10. [AGREEMENTS WITH OTHER AGENCIES.] The 23.13 commissioner of public safety is authorized to enter into 23.14 agreements with other agencies to issue cards to clients of 23.15 those agencies for use in their programs. The cards may be 23.16 issued to persons who do not qualify for a Minnesota driver's 23.17 license or do not provide evidence of name and identity as 23.18 required by rule for a Minnesota identification card. Persons 23.19 issued cards under this subdivision will meet the identification 23.20 verification requirements of the contracting agency. 23.21 The interagency agreement may include provisions for the 23.22 payment of the county fee provided in section 171.06, 23.23 subdivision 4, and the actual cost to manufacture the card. 23.24 Cards issued under this subdivision are not Minnesota 23.25 identification cards for the purposes defined in sections 23.26 48.512, 201.061, 201.161, 332.50, and 340A.503. 23.27 Sec. 3. Minnesota Statutes 1994, section 245A.03, 23.28 subdivision 2a, is amended to read: 23.29 Subd. 2a. [LICENSING OFFOSTER CARE BY AN INDIVIDUAL WHO 23.30 IS RELATED TO A CHILD; LICENSE REQUIRED.] Notwithstanding 23.31 subdivision 2, clause (1),the commissioner must license or23.32approve an individual who is related to a childin order to 23.33 provide foster care forthata child, an individual who is 23.34 related to the child, other than a grandparent, to the extent 23.35 permissible under federal law, parent, or legal guardian, must 23.36 be licensed by the commissioner except as provided by section 24.1 245A.035.The commissioner may issue the license or approval24.2retroactive to the date the child was placed in the applicant's24.3home, so long as no more than 90 days have elapsed since the24.4placement. If more than 90 days have elapsed since the24.5placement, the commissioner may issue the license or approval24.6retroactive 90 days. The granting of a license or approval to24.7an individual who is related to a child shall be according to24.8standards set forth by foster care rule. The commissioner shall24.9consider the importance of maintaining the child's relationship24.10to family as an additional significant factor in determining24.11whether to set aside a licensing disqualifier under section24.12245A.04, subdivision 3b, or to grant a variance of licensing24.13requirements under section 245A.04, subdivision 9, in licensing24.14or approving an individual related to a child.24.15 Sec. 4. [245A.035] [RELATIVE FOSTER CARE; EMERGENCY 24.16 LICENSE.] 24.17 Subdivision 1. [GRANT OF EMERGENCY LICENSE.] 24.18 Notwithstanding section 245A.03, subdivision 2a, a county agency 24.19 may place a child for foster care with a relative who is not 24.20 licensed to provide foster care, provided the requirements of 24.21 subdivision 2 are met. As used in this section, the term 24.22 "relative" has the meaning given it under section 260.181, 24.23 subdivision 3. 24.24 Subd. 2. [COOPERATION WITH EMERGENCY LICENSING PROCESS.] 24.25 (a) A county agency that places a child with a relative who is 24.26 not licensed to provide foster care must begin the process of 24.27 securing an emergency license for the relative as soon as 24.28 possible and must conduct the initial inspection required by 24.29 subdivision 3, clause (1), whenever possible, prior to placing 24.30 the child in the relative's home, but no later than three 24.31 working days after placing the child in the home. A child 24.32 placed in the home of a relative who is not licensed to provide 24.33 foster care must be removed from that home if the relative fails 24.34 to cooperate with the county agency in securing an emergency 24.35 foster care license. The commissioner may only issue an 24.36 emergency foster care license to a relative with whom the county 25.1 agency wishes to place or has placed a child for foster care. 25.2 (b) If a child is to be placed in the home of a relative 25.3 not licensed to provide foster care, either the placing agency 25.4 or the county agency in the county in which the relative lives 25.5 shall conduct the emergency licensing process as required in 25.6 this section. 25.7 Subd. 3. [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 25.8 emergency license may be issued, the following requirements must 25.9 be met: 25.10 (1) the county agency must conduct an initial inspection of 25.11 the premises where the foster care is to be provided to ensure 25.12 the health and safety of any child placed in the home. The 25.13 county agency shall conduct the inspection using a form 25.14 developed by the commissioner; 25.15 (2) at the time of the inspection or placement, whichever 25.16 is earlier, the relative being considered for an emergency 25.17 license shall receive an application form for a child foster 25.18 care license; and 25.19 (3) whenever possible, prior to placing the child in the 25.20 relative's home, the relative being considered for an emergency 25.21 license shall provide the information required by section 25.22 245A.04, subdivision 3, paragraph (b). 25.23 Subd. 4. [APPLICANT STUDY.] When the county agency has 25.24 received the information required by section 245A.04, 25.25 subdivision 3, paragraph (b), the county agency shall begin an 25.26 applicant study according to the procedures in section 245A.04, 25.27 subdivision 3. The commissioner may issue an emergency license 25.28 upon recommendation of the county agency once the initial 25.29 inspection has been successfully completed and the information 25.30 necessary to begin the applicant background study has been 25.31 provided. If the county agency does not recommend that the 25.32 emergency license be granted, the agency shall notify the 25.33 relative in writing that the agency is recommending denial to 25.34 the commissioner; shall remove any child who has been placed in 25.35 the home prior to licensure; and shall inform the relative in 25.36 writing of the procedure to request review pursuant to 26.1 subdivision 6. An emergency license shall be effective until a 26.2 child foster care license is granted or denied, but shall in no 26.3 case remain in effect more than 90 days from the date of 26.4 placement. 26.5 Subd. 5. [CHILD FOSTER CARE LICENSE APPLICATION.] The 26.6 emergency license holder shall complete the child foster care 26.7 license application and necessary paperwork within ten days of 26.8 the placement. The county agency shall assist the emergency 26.9 license holder to complete the application. The granting of a 26.10 child foster care license to a relative shall be under the 26.11 procedures in this chapter and according to the standards set 26.12 forth by foster care rule. In licensing a relative, the 26.13 commissioner shall consider the importance of maintaining the 26.14 child's relationship with relatives as an additional significant 26.15 factor in determining whether to set aside a licensing 26.16 disqualifier under section 245A.04, subdivision 3b, or to grant 26.17 a variance of licensing requirements under section 245A.04, 26.18 subdivision 9. 26.19 Subd. 6. [DENIAL OF EMERGENCY LICENSE.] If the 26.20 commissioner denies an application for an emergency foster care 26.21 license under this section, that denial must be in writing and 26.22 must include reasons for the denial. Denial of an emergency 26.23 license is not subject to appeal under chapter 14. The relative 26.24 may request a review of the denial by submitting to the 26.25 commissioner a written statement of the reasons an emergency 26.26 license should be granted. The commissioner shall evaluate the 26.27 request for review and determine whether to grant the emergency 26.28 license. Within 15 working days of the receipt of the request 26.29 for review, the commissioner shall notify the relative 26.30 requesting review in written form whether the emergency license 26.31 will be granted. The commissioner's review shall be based on a 26.32 review of the records submitted by the county agency and the 26.33 relative. A child shall not be placed or remain placed in the 26.34 relative's home while the request for review is pending. Denial 26.35 of an emergency license shall not preclude an individual from 26.36 reapplying for an emergency license or from applying for a child 27.1 foster care license. The decision of the commissioner is the 27.2 final administrative agency action. 27.3 Sec. 5. Minnesota Statutes 1994, section 245A.04, 27.4 subdivision 3, is amended to read: 27.5 Subd. 3. [STUDY OF THE APPLICANT.] (a) Before the 27.6 commissioner issues a license, the commissioner shall conduct a 27.7 study of the individuals specified in clauses (1) to (4) 27.8 according to rules of the commissioner. The applicant, license 27.9 holder, the bureau of criminal apprehension, and county 27.10 agencies, after written notice to the individual who is the 27.11 subject of the study, shall help with the study by giving the 27.12 commissioner criminal conviction data and reports about abuse or 27.13 neglect of adults in licensed programs substantiated under 27.14 section 626.557 and the maltreatment of minors in licensed 27.15 programs substantiated under section 626.556. The individuals 27.16 to be studied shall include: 27.17 (1) the applicant; 27.18 (2) persons over the age of 13 living in the household 27.19 where the licensed program will be provided; 27.20 (3) current employees or contractors of the applicant who 27.21 will have direct contact with persons served by the program; and 27.22 (4) volunteers who have direct contact with persons served 27.23 by the program to provide program services, if the contact is 27.24 not directly supervised by the individuals listed in clause (1) 27.25 or (3). 27.26 The juvenile courts shall also help with the study by 27.27 giving the commissioner existing juvenile court records on 27.28 individuals described in clause (2) relating to delinquency 27.29 proceedings held within either the five years immediately 27.30 preceding the application or the five years immediately 27.31 preceding the individual's 18th birthday, whichever time period 27.32 is longer. The commissioner shall destroy juvenile records 27.33 obtained pursuant to this subdivision when the subject of the 27.34 records reaches age 23. 27.35 For purposes of this section and Minnesota Rules, part 27.36 9543.3070, a finding that a delinquency petition is proven in 28.1 juvenile court shall be considered a conviction in state 28.2 district court. 28.3 For purposes of this subdivision, "direct contact" means 28.4 providing face-to-face care, training, supervision, counseling, 28.5 consultation, or medication assistance to persons served by a 28.6 program. For purposes of this subdivision, "directly supervised" 28.7 means an individual listed in clause (1) or (3) is within sight 28.8 or hearing of a volunteer to the extent that the individual 28.9 listed in clause (1) or (3) is capable at all times of 28.10 intervening to protect the health and safety of the persons 28.11 served by the program who have direct contact with the volunteer. 28.12 A study of an individual in clauses (1) to (4) shall be 28.13 conducted at least upon application for initial license and 28.14 reapplication for a license. No applicant, license holder, or 28.15 individual who is the subject of the study shall pay any fees 28.16 required to conduct the study. 28.17 (b) The individual who is the subject of the study must 28.18 provide the applicant or license holder with sufficient 28.19 information to ensure an accurate study including the 28.20 individual's first, middle, and last name; home address, city, 28.21 county, and state of residence; zip code; sex; date of birth; 28.22 and driver's license number. The applicant or license holder 28.23 shall provide this information about an individual in paragraph 28.24 (a), clauses (1) to (4), on forms prescribed by the 28.25 commissioner. The commissioner may request additional 28.26 information of the individual, which shall be optional for the 28.27 individual to provide, such as the individual's social security 28.28 number or race. 28.29 (c) Except for child foster care, adult foster care, and 28.30 family day care homes, a study must include information from the 28.31 county agency's record of substantiated abuse or neglect of 28.32 adults in licensed programs, and the maltreatment of minors in 28.33 licensed programs, information from juvenile courts as required 28.34 in paragraph (a) for persons listed in paragraph (a), clause 28.35 (2), and information from the bureau of criminal apprehension. 28.36 For child foster care, adult foster care, and family day care 29.1 homes, the study must include information from the county 29.2 agency's record of substantiated abuse or neglect of adults, and 29.3 the maltreatment of minors, information from juvenile courts as 29.4 required in paragraph (a) for persons listed in paragraph (a), 29.5 clause (2), and information from the bureau of criminal 29.6 apprehension. The commissioner may also review arrest and 29.7 investigative information from the bureau of criminal 29.8 apprehension, a county attorney, county sheriff, county agency, 29.9 local chief of police, other states, the courts, or a national 29.10 criminal record repository if the commissioner has reasonable 29.11 cause to believe the information is pertinent to the 29.12 disqualification of an individual listed in paragraph (a), 29.13 clauses (1) to (4). The commissioner is not required to conduct 29.14 more than one review of a subject's records from the national 29.15 criminal record repository if a review of the subject's criminal 29.16 history with the national criminal record repository has already 29.17 been completed by the commissioner and there has been no break 29.18 in the subject's affiliation with the license holder who 29.19 initiated the background studies. 29.20 (d) An applicant's or license holder's failure or refusal 29.21 to cooperate with the commissioner is reasonable cause to deny 29.22 an application or immediately suspend, suspend, or revoke a 29.23 license. Failure or refusal of an individual to cooperate with 29.24 the study is just cause for denying or terminating employment of 29.25 the individual if the individual's failure or refusal to 29.26 cooperate could cause the applicant's application to be denied 29.27 or the license holder's license to be immediately suspended, 29.28 suspended, or revoked. 29.29 (e) The commissioner shall not consider an application to 29.30 be complete until all of the information required to be provided 29.31 under this subdivision has been received. 29.32 (f) No person in paragraph (a), clause (1), (2), (3), or 29.33 (4) who is disqualified as a result of this section may be 29.34 retained by the agency in a position involving direct contact 29.35 with persons served by the program. 29.36 (g) Termination of persons in paragraph (a), clause (1), 30.1 (2), (3), or (4) made in good faith reliance on a notice of 30.2 disqualification provided by the commissioner shall not subject 30.3 the applicant or license holder to civil liability. 30.4 (h) The commissioner may establish records to fulfill the 30.5 requirements of this section. 30.6 (i) The commissioner may not disqualify an individual 30.7 subject to a study under this section because that person has, 30.8 or has had, a mental illness as defined in section 245.462, 30.9 subdivision 20. 30.10 (j) An individual who is subject to an applicant background 30.11 study under this section and whose disqualification in 30.12 connection with a license would be subject to the limitations on 30.13 reconsideration set forth in subdivision 3b, paragraph (c), 30.14 shall be disqualified for conviction of the crimes specified in 30.15 the manner specified in subdivision 3b, paragraph (c). The 30.16 commissioner of human services shall amend Minnesota Rules, part 30.17 9543.3070, to conform to this section. 30.18 Sec. 6. Minnesota Statutes 1994, section 245A.04, 30.19 subdivision 3b, is amended to read: 30.20 Subd. 3b. [RECONSIDERATION OF DISQUALIFICATION.] (a) 30.21 Within 30 days after receiving notice of disqualification under 30.22 subdivision 3a, the individual who is the subject of the study 30.23 may request reconsideration of the notice of disqualification. 30.24 The individual must submit the request for reconsideration to 30.25 the commissioner in writing. The individual must present 30.26 information to show that: 30.27 (1) the information the commissioner relied upon is 30.28 incorrect; or 30.29 (2) the subject of the study does not pose a risk of harm 30.30 to any person served by the applicant or license holder. 30.31 (b) The commissioner may set aside the disqualification if 30.32 the commissioner finds that the information the commissioner 30.33 relied upon is incorrect or the individual does not pose a risk 30.34 of harm to any person served by the applicant or license 30.35 holder. The commissioner shall review the consequences of the 30.36 event or events that could lead to disqualification, whether 31.1 there is more than one disqualifying event, the vulnerability of 31.2 the victim at the time of the event, the time elapsed without a 31.3 repeat of the same or similar event, and documentation of 31.4 successful completion by the individual studied of training or 31.5 rehabilitation pertinent to the event. In reviewing a 31.6 disqualification, the commissioner shall give preeminent weight 31.7 to the safety of each person to be served by the license holder 31.8 or applicant over the interests of the license holder or 31.9 applicant. 31.10 (c) Unless the information the commissioner relied on in 31.11 disqualifying an individual is incorrect, the commissioner may 31.12 not set aside the disqualification of an individual in 31.13 connection with a license to provide family day care for 31.14 children, foster care for children in the provider's own home, 31.15 or foster care or day care services for adults in the provider's 31.16 own home if: 31.17 (1) less than ten years have passed since the discharge of 31.18 the sentence imposed for the offense; and the individual has 31.19 been convicted of a violation of any offense listed in section 31.20 609.20 (manslaughter in the first degree), 609.205 (manslaughter 31.21 in the second degree), 609.21 (criminal vehicular homicide), 31.22 609.215 (aiding suicide or aiding attempted suicide), 609.221 to 31.23 609.2231 (felony violations of assault in the first, second, 31.24 third, or fourth degree), 609.713 (terroristic threats), 609.235 31.25 (use of drugs to injure or to facilitate crime), 609.24 (simple 31.26 robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 31.27 609.255 (false imprisonment), 609.561 or 609.562 (arson in the 31.28 first or second degree), 609.71 (riot), 609.582 (burglary in the 31.29 first or second degree), 609.66 (reckless use of a gun or 31.30 dangerous weapon or intentionally pointing a gun at or towards a 31.31 human being), 609.665 (setting a spring gun), 609.67 (unlawfully 31.32 owning, possessing, or operating a machine gun), 609.749 31.33 (stalking), 152.021 or 152.022 (controlled substance crime in 31.34 the first or second degree), 152.023, subdivision 1, clause (3) 31.35 or (4), or subdivision 2, clause (4) (controlled substance crime 31.36 in the third degree), 152.024, subdivision 1, clause (2), (3), 32.1 or (4) (controlled substance crime in the fourth degree), 32.2 609.228 (great bodily harm caused by distribution of drugs), 32.3 609.23 (mistreatment of persons confined), 609.231 (mistreatment 32.4 of residents or patients), 609.265 (abduction), 609.2664 to 32.5 609.2665 (manslaughter of an unborn child in the first or second 32.6 degree), 609.267 to 609.2672 (assault of an unborn child in the 32.7 first, second, or third degree), 609.268 (injury or death of an 32.8 unborn child in the commission of a crime), 617.293 32.9 (disseminating or displaying harmful material to minors), 32.10 609.378 (neglect or endangerment of a child), 609.377 (a gross 32.11 misdemeanor offense of malicious punishment of a child); or an 32.12 attempt or conspiracy to commit any of these offenses, as each 32.13 of these offenses is defined in Minnesota Statutes; or an 32.14 offense in any other state, the elements of which are 32.15 substantially similar to the elements of any of the foregoing 32.16 offenses; 32.17 (2) regardless of how much time has passed since the 32.18 discharge of the sentence imposed for the offense, the 32.19 individual was convicted of a violation of any offense listed in 32.20 sections 609.185 to 609.195 (murder in the first, second, or 32.21 third degree), 609.2661 to 609.2663 (murder of an unborn child 32.22 in the first, second, or third degree), 609.377 (a felony 32.23 offense of malicious punishment of a child), 609.322 32.24 (soliciting, inducement, or promotion of prostitution), 609.323 32.25 (receiving profit derived from prostitution), 609.342 to 609.345 32.26 (criminal sexual conduct in the first, second, third, or fourth 32.27 degree), 609.352 (solicitation of children to engage in sexual 32.28 conduct), 617.246 (use of minors in a sexual performance), 32.29 617.247 (possession of pictorial representations of a minor), 32.30 609.365 (incest), or an attempt or conspiracy to commit any of 32.31 these offenses as defined in Minnesota Statutes, or an offense 32.32 in any other state, the elements of which are substantially 32.33 similar to any of the foregoing offenses; 32.34 (3) within the seven years preceding the study, the 32.35 individual committed an act that constitutes maltreatment of a 32.36 child under section 626.556, subdivision 10e, and that resulted 33.1 in substantial bodily harm as defined in section 609.02, 33.2 subdivision 7a, or substantial mental or emotional harm as 33.3 supported by competent psychological or psychiatric evidence; or 33.4 (4) within the seven years preceding the study, the 33.5 individual was determined under section 626.557 to be the 33.6 perpetrator of a substantiated incident of abuse of a vulnerable 33.7 adult that resulted in substantial bodily harm as defined in 33.8 section 609.02, subdivision 7a, or substantial mental or 33.9 emotional harm as supported by competent psychological or 33.10 psychiatric evidence. 33.11 In the case of any ground for disqualification under 33.12 clauses (1) to (4), if the act was committed by an individual 33.13 other than the applicant or license holder residing in the 33.14 applicant's or license holder's home, the applicant or license 33.15 holder may seek reconsideration when the individual who 33.16 committed the act no longer resides in the home. 33.17 The disqualification periods provided under clauses (1), 33.18 (3), and (4) are the minimum applicable disqualification 33.19 periods. The commissioner may determine that an individual 33.20 should continue to be disqualified from licensure because the 33.21 license holder or applicant poses a risk of harm to a person 33.22 served by that individual after the minimum disqualification 33.23 period has passed. 33.24 (d) The commissioner shall respond in writing to all 33.25 reconsideration requests within 15 working days after receiving 33.26 the request for reconsideration. If the disqualification is set 33.27 aside, the commissioner shall notify the applicant or license 33.28 holder in writing of the decision. 33.29 (e) Except as provided in subdivision 3c, the 33.30 commissioner's decision to disqualify an individual, including 33.31 the decision to grant or deny a reconsideration of 33.32 disqualification under this subdivision, or to set aside or 33.33 uphold the results of the study under subdivision 3, is the 33.34 final administrative agency action and shall not be subject to 33.35 further review in a contested case under chapter 14 involving a 33.36 negative licensing action taken in response to the 34.1 disqualification. 34.2 Sec. 7. Minnesota Statutes 1994, section 245A.04, 34.3 subdivision 7, is amended to read: 34.4 Subd. 7. [ISSUANCE OF A LICENSE; PROVISIONAL LICENSE.] (a) 34.5 If the commissioner determines that the program complies with 34.6 all applicable rules and laws, the commissioner shall issue a 34.7 license. At minimum, the license shall state: 34.8 (1) the name of the license holder; 34.9 (2) the address of the program; 34.10 (3) the effective date and expiration date of the license; 34.11 (4) the type of license; 34.12 (5) the maximum number and ages of persons that may receive 34.13 services from the program; and 34.14 (6) any special conditions of licensure. 34.15 (b) The commissioner may issue a provisional license for a 34.16 period not to exceed one year if: 34.17 (1) the commissioner is unable to conduct the evaluation or 34.18 observation required by subdivision 4, paragraph (a), clauses (3) 34.19 and (4), because the program is not yet operational; 34.20 (2) certain records and documents are not available because 34.21 persons are not yet receiving services from the program; and 34.22 (3) the applicant complies with applicable laws and rules 34.23 in all other respects. 34.24 A provisional license must not be issued except at the time that 34.25 a license is first issued to an applicant. 34.26 (c) A decision by the commissioner to issue a license does 34.27 not guarantee that any person or persons will be placed or cared 34.28 for in the licensed program. A license shall not be 34.29 transferable to another individual, corporation, partnership, 34.30 voluntary association, other organization, or controlling 34.31 individual, or to another location. Unless otherwise specified 34.32 by statute, all licenses expire at 12:01 a.m. on the day after 34.33 the expiration date stated on the license. A license holder 34.34 must apply for and be granted a new license to operate the 34.35 program or the program must not be operated after the expiration 34.36 date. 35.1 Sec. 8. Minnesota Statutes 1994, section 245A.04, 35.2 subdivision 9, is amended to read: 35.3 Subd. 9. [VARIANCES.] The commissioner may grant variances 35.4 to rules that do not affect the health or safety of persons in a 35.5 licensed program if the following conditions are met: 35.6 (1) the variance must be requested by an applicant or 35.7 license holder on a form and in a manner prescribed by the 35.8 commissioner; 35.9 (2) the request for a variance must include the reasons 35.10 that the applicant or license holder cannot comply with a 35.11 requirement as stated in the rule and the alternative equivalent 35.12 measures that the applicant or license holder will follow to 35.13 comply with the intent of the rule; and 35.14 (3) the request must state the period of time for which the 35.15 variance is requested. 35.16 The commissioner may grant a permanent variance when 35.17 conditions under which the variance is requested do not affect 35.18 the health or safety of persons being served by the licensed 35.19 program, nor compromise the qualifications of staff to provide 35.20 services. The permanent variance shall expire as soon as the 35.21 conditions that warranted the variance are modified in any way. 35.22 Any applicant or license holder must inform the commissioner of 35.23 any changes or modifications that have occurred in the 35.24 conditions that warranted the permanent variance. Failure to 35.25 advise the commissioner shall result in revocation of the 35.26 permanent variance and may be cause for other sanctions under 35.27 sections 245A.06 and 245A.07. 35.28 The commissioner's decision to grant or deny a variance 35.29 request is final and not subject to appeal under the provisions 35.30 of chapter 14. 35.31 Sec. 9. Minnesota Statutes 1994, section 245A.06, 35.32 subdivision 2, is amended to read: 35.33 Subd. 2. [RECONSIDERATION OF CORRECTION ORDERS.] If the 35.34 applicant or license holder believes that the contents of the 35.35 commissioner's correction order are in error, the applicant or 35.36 license holder may ask the department of human services to 36.1 reconsider the parts of the correction order that are alleged to 36.2 be in error. The request for reconsideration must be in 36.3 writing, delivered by certified mailand received by the 36.4 commissioner within 20 calendar days after receipt of the 36.5 correction order by the applicant or license holder, and: 36.6 (1) specify the parts of the correction order that are 36.7 alleged to be in error; 36.8 (2) explain why they are in error; and 36.9 (3) include documentation to support the allegation of 36.10 error. 36.11 A request for reconsideration does not stay any provisions 36.12 or requirements of the correction order. The commissioner's 36.13 disposition of a request for reconsideration is final and not 36.14 subject to appeal under chapter 14. 36.15 Sec. 10. Minnesota Statutes 1994, section 245A.06, 36.16 subdivision 4, is amended to read: 36.17 Subd. 4. [NOTICE OF FINE; APPEAL.] A license holder who is 36.18 ordered to pay a fine must be notified of the order by certified 36.19 mail. The notice must be mailed to the address shown on the 36.20 application or the last known address of the license holder. 36.21 The notice must state the reasons the fine was ordered and must 36.22 inform the license holder of the responsibility for payment of 36.23 fines in subdivision 7 and the right to a contested case hearing 36.24 under chapter 14. The license holder may appeal the order to 36.25 forfeit a fine by notifying the commissioner by certified mail 36.26 within 15 calendar days after receiving the order. A timely 36.27 appeal shall stay forfeiture of the fine until the commissioner 36.28 issues a final order under section 245A.08, subdivision 5. 36.29 Sec. 11. Minnesota Statutes 1994, section 245A.06, is 36.30 amended by adding a subdivision to read: 36.31 Subd. 7. [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 36.32 fine has been assessed, the license holder may not avoid payment 36.33 by closing, selling, or otherwise transferring the licensed 36.34 program to a third party. In such an event, the license holder 36.35 will be personally liable for payment. In the case of a 36.36 corporation, each controlling individual is personally and 37.1 jointly liable for payment. 37.2 Sec. 12. Minnesota Statutes 1994, section 245A.07, 37.3 subdivision 3, is amended to read: 37.4 Subd. 3. [SUSPENSION, REVOCATION, PROBATION.] The 37.5 commissioner may suspend, revoke, or make probationary a license 37.6 if a license holder fails to comply fully with applicable laws 37.7 or rules or knowingly gives false or misleading information to 37.8 the commissioner in connection with an application for a license 37.9 or during an investigation. A license holder who has had a 37.10 license suspended, revoked, or made probationary must be given 37.11 notice of the action by certified mail. The notice must be 37.12 mailed to the address shown on the application or the last known 37.13 address of the license holder. The notice must state the 37.14 reasons the license was suspended, revoked, or made probationary. 37.15 (a) If the license was suspended or revoked, the notice 37.16 must inform the license holder of the right to a contested case 37.17 hearing under chapter 14. The license holder may appeal an 37.18 order suspending or revoking a license. The appeal of an order 37.19 suspending or revoking a license must be made in writing by 37.20 certified mail and must be received by the commissioner within 37.21 ten calendar days after the license holder receives notice that 37.22 the license has been suspended or revoked. 37.23 (b) If the license was made probationary, the notice must 37.24 inform the license holder of the right to request a 37.25 reconsideration by the commissioner. The request for 37.26 reconsideration must be made in writing by certified mail and 37.27 must be received by the commissioner within ten calendar days 37.28 after the license holder receives notice that the license has 37.29 been made probationary. The license holder may submit with the 37.30 request for reconsideration written argument or evidence in 37.31 support of the request for reconsideration. The commissioner's 37.32 disposition of a request for reconsideration is final and is not 37.33 subject to appeal under chapter 14. 37.34 Sec. 13. Minnesota Statutes 1994, section 245A.14, 37.35 subdivision 6, is amended to read: 37.36 Subd. 6. [DROP-IN CHILD CARE PROGRAMS.] (a) Except as 38.1 expressly set forth in this subdivision, drop-in child care 38.2 programs must be licensed as a drop-in program under the rules 38.3 governing child care programs operated in a center. 38.4 (b) Drop-in child care programs are exempt from the 38.5 following Minnesota Rules: 38.6 (1) part 9503.0040; 38.7 (2) part 9503.0045, subpart 1, items F and G; 38.8 (3) part 9503.0050, subpart 6, except for children less 38.9 than 2-1/2 years old; 38.10 (4) one-half the requirements of part 9503.0060, subpart 4, 38.11 item A, subitems (2), (5), and (8), subpart 5, item A, subitems 38.12 (2), (3), and (7), and subpart 6, item A, subitems (3) and (6); 38.13 (5) part 9503.0070; and 38.14 (6) part 9503.0090, subpart 2. 38.15 (c) A drop-in child care program must be operated under the 38.16 supervision of a person qualified as a director and a teacher. 38.17 (d) A drop-in child care program must have at least two 38.18 persons on staff whenever the program is operating, except that 38.19 the commissioner may permit variances from this requirement 38.20 under specified circumstances for parent cooperative programs, 38.21 as long as all other staff-to-child ratios are met. 38.22 (e) Whenever the total number of children present to be 38.23 cared for at a center is more than 20, children that are younger 38.24 than age 2-1/2 must be in a separate group. This group may 38.25 contain children up to 60 months old. This group must be cared 38.26 for in an area that is physically separated from older children. 38.27 (f) A drop-in child care program must maintain a minimum 38.28 staff ratio for children age 2-1/2 or greater of one staff 38.29 person for each ten children. 38.30 (g) If the program has additional staff who are on call as 38.31 a mandatory condition of their employment, the minimum 38.32 child-to-staff ratio may be exceeded only for children age 2-1/2 38.33 or greater, by a maximum of four children, for no more than 20 38.34 minutes while additional staff are in transit. 38.35 (h) The minimum staff-to-child ratio for infants up to 16 38.36 months of age is one staff person for every four infants. The 39.1 minimum staff-to-child ratio for children age 17 months to 30 39.2 months is one staff for every seven children. 39.3 (i) In drop-in care programs that serve both infants and 39.4 older children, children up to age 2-1/2 may be supervised by 39.5 assistant teachers, as long as other staff are present in 39.6 appropriate ratios. 39.7 (j) The minimum staff distribution pattern for a drop-in 39.8 child care program serving children age 2-1/2 or greater is: 39.9 the first staff member must be a teacher; the second, third, and 39.10 fourth staff members must have at least the qualifications of a 39.11 child care aide; the fifth staff member must have at least the 39.12 qualifications of an assistant teacher; the sixth, seventh, and 39.13 eighth staff members must have at least the qualifications of a 39.14 child care aide; and the ninth staff person must have at least 39.15 the qualifications of an assistant teacher. 39.16 (k) A drop-in child care program may care for siblings 16 39.17 months or older together in any group. For purposes of this 39.18 subdivision, sibling is defined as sister or brother, 39.19 half-sister or half-brother, or stepsister or stepbrother. 39.20 (l) The commissioner may grant a variance to any of the 39.21 requirements in paragraphs (a) to (k), as long as the health and 39.22 safety of the persons served by the program are not affected. 39.23 The request for a variance shall comply with the provisions in 39.24 section 245A.04, subdivision 9. 39.25 Sec. 14. Minnesota Statutes 1994, section 256.014, 39.26 subdivision 1, is amended to read: 39.27 Subdivision 1. [ESTABLISHMENT OF SYSTEMS.] The 39.28 commissioner of human services shall establish and enhance 39.29 computer systems necessary for the efficient operation of the 39.30 programs the commissioner supervises, including: 39.31 (1) management and administration of the food stamp and 39.32 income maintenance programs, including the electronic 39.33 distribution of benefits; 39.34 (2) management and administration of the child support 39.35 enforcement program; and 39.36 (3) administration of medical assistance and general 40.1 assistance medical care. 40.2 The commissioner shall distribute the nonfederal share of 40.3 the costs of operating and maintaining the systems to the 40.4 commissioner and to the counties participating in the system in 40.5 a manner that reflects actual system usage, except that the 40.6 nonfederal share of the costs of the MAXIS computer system and 40.7 child support enforcement systems shall be borne entirely by the 40.8 commissioner. Development costs must not be assessed against 40.9 county agencies. 40.10 Sec. 15. Minnesota Statutes 1994, section 256.025, 40.11 subdivision 1, is amended to read: 40.12 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 40.13 section, the following terms have the meanings given them. 40.14 (b) "Base amount" means the calendar year 1990 county share 40.15 of county agency expenditures for all of the programs specified 40.16 in subdivision 2, except for the programs in subdivision 2, 40.17 clauses (4), (7), and (13). The 1990 base amount for 40.18 subdivision 2, clause (4), shall be reduced by one-seventh for 40.19 each county, and the 1990 base amount for subdivision 2, clause 40.20 (7), shall be reduced by seven-tenths for each county, and those 40.21 amounts in total shall be the 1990 base amount for group 40.22 residential housing in subdivision 2, clause (13). 40.23 (c) "County agency expenditure" means the total expenditure 40.24 or cost incurred by the county of financial responsibility for 40.25 the benefits and services for each of the programs specified in 40.26 subdivision 2. The term includes the federal, state, and county 40.27 share of costs for programs in which there is federal financial 40.28 participation. For programs in which there is no federal 40.29 financial participation, the term includes the state and county 40.30 share of costs. The term excludes county administrative costs, 40.31 unless otherwise specified. 40.32 (d) "Nonfederal share" means the sum of state and county 40.33 shares of costs of the programs specified in subdivision 2. 40.34 (e) The "county share of county agency expenditures growth 40.35 amount" is the amount by which the county share of county agency 40.36 expenditures in calendar years 1991 to20002002 has increased 41.1 over the base amount. 41.2 Sec. 16. Minnesota Statutes 1994, section 256.025, 41.3 subdivision 3, is amended to read: 41.4 Subd. 3. [PAYMENT METHODS.] (a) Beginning July 1, 1991, 41.5 the state will reimburse counties for the county share of county 41.6 agency expenditures for benefits and services distributed under 41.7 subdivision 2. Reimbursement may take the form of offsets to 41.8 billings of a county, if the county agrees to the offset process. 41.9 (b) Payments under subdivision 4 are only for client 41.10 benefits and services distributed under subdivision 2 and do not 41.11 include reimbursement for county administrative expenses. 41.12 (c) The state and the county agencies shall pay for 41.13 assistance programs as follows: 41.14 (1) Where the state issues payments for the programs, the 41.15 county shall monthly or quarterly pay to the state, as required 41.16 by the department of human services, the portion of program 41.17 costs not met by federal and state funds. The payment shall be 41.18 an estimate that is based on actual expenditures from the prior 41.19 period and that is sufficient to compensate for the county share 41.20 of disbursements as well as state and federal shares of 41.21 recoveries; 41.22 (2) Where the county agencies issue payments for the 41.23 programs, the state shall monthly or quarterly pay to counties 41.24 all federal funds available for those programs together with an 41.25 amount of state funds equal to the state share of expenditures; 41.26 and 41.27 (3) Payments made under this paragraph are subject to 41.28 section 256.017. Adjustment of any overestimate or 41.29 underestimate in payments shall be made by the state agency in 41.30 any succeeding month. 41.31 Sec. 17. Minnesota Statutes 1994, section 256.026, is 41.32 amended to read: 41.33 256.026 [ANNUAL APPROPRIATION.] 41.34 (a) There shall be appropriated from the general fund to 41.35 the commissioner of human services in fiscal year19941996 the 41.36 amount of $136,154,768 and in fiscal year 1997 and each fiscal 42.1 year thereafter the amount of$142,339,359, which is the sum of42.2the amount of human services aid determined for all counties in42.3Minnesota for calendar year 1992 under Minnesota Statutes 1992,42.4section 273.1398, subdivision 5a, before any adjustments for42.5calendar year 1991$133,781,768. 42.6 (b) In addition to the amount in paragraph (a), there shall 42.7 also be annually appropriated from the general fund to the 42.8 commissioner of human services in fiscal years 1996, 1997, 1998, 42.9 1999, 2000, and 2001 the amount of$5,930,807$5,574,241. 42.10 (c) The amounts appropriated under paragraphs (a) and (b) 42.11 shall be used with other appropriations to make payments 42.12 required under section 256.025 for fiscal year19941996 and 42.13 thereafter. 42.14 Sec. 18. Minnesota Statutes 1994, section 256.034, 42.15 subdivision 1, is amended to read: 42.16 Subdivision 1. [CONSOLIDATION OF TYPES OF ASSISTANCE.] 42.17 Under the Minnesota family investment plan, assistance 42.18 previously provided to families through the AFDC, food stamp, 42.19 and general assistance programs must be combined into a single 42.20 cash assistance program. As authorized by Congress, families 42.21 receiving assistance through the Minnesota family investment 42.22 plan are automatically eligible for and entitled to medical 42.23 assistance under chapter 256B. Federal, state, and local funds 42.24 that would otherwise be allocated for assistance to families 42.25 under the AFDC, food stamp, and general assistance programs must 42.26 be transferred to the Minnesota family investment plan. The 42.27 provisions of the Minnesota family investment plan prevail over 42.28 any provisions of sections 245.771, 256.72 to 256.87, 256D.01 to 42.29 256D.21, or 393.07, subdivisions 10 and 10a, and any rules 42.30 implementing those sections with which they are irreconcilable. 42.31 The food stamp, general assistance, and work readiness programs 42.32 for single persons and couples who are not responsible for the 42.33 care of children are not replaced by the Minnesota family 42.34 investment plan. Unless stated otherwise in statutes or rules 42.35 governing the Minnesota family investment plan, participants in 42.36 the Minnesota family investment plan shall be considered to be 43.1 recipients of aid under aid to families with dependent children, 43.2 family general assistance, and food stamps for the purposes of 43.3 statutes and rules affecting such recipients or allocations of 43.4 funding based on the assistance status of the recipients, and to 43.5 specifically be subject to the provisions of section 256.98. 43.6 Sec. 19. Minnesota Statutes 1994, section 256.045, 43.7 subdivision 3, is amended to read: 43.8 Subd. 3. [STATE AGENCY HEARINGS.] (a) Any person applying 43.9 for, receiving or having received public assistance or a program 43.10 of social services granted by the state agency or a county 43.11 agency under sections 252.32, 256.031 to 256.036, and 256.72 to 43.12 256.879, chapters 256B, 256D, 256E, 261, or the federal Food 43.13 Stamp Act whose application for assistance is denied, not acted 43.14 upon with reasonable promptness, or whose assistance is 43.15 suspended, reduced, terminated, or claimed to have been 43.16 incorrectly paid, or any patient or relative aggrieved by an 43.17 order of the commissioner under section 252.27, or a party 43.18 aggrieved by a ruling of a prepaid health plan, may contest that 43.19 action or decision before the state agency by submitting a 43.20 written request for a hearing to the state agency within 30 days 43.21 after receiving written notice of the action or decision, or 43.22 within 90 days of such written notice if the applicant, 43.23 recipient, patient, or relative shows good cause why the request 43.24 was not submitted within the 30-day time limit. 43.25 (b) Except for a prepaid health plan, a vendor of medical 43.26 care as defined in section 256B.02, subdivision 7, or a vendor 43.27 under contract with a county agency to provide social services 43.28 under section 256E.08, subdivision 4, is not a party and may not 43.29 request a hearing under this section, except if assisting a 43.30 recipient as provided in subdivision 4. 43.31 (c) An applicant or recipient is not entitled to receive 43.32 social services beyond the services included in the amended 43.33 community social services plan developed under section 256E.081, 43.34 subdivision 3, if the county agency has met the requirements in 43.35 section 256E.081. 43.36 Sec. 20. Minnesota Statutes 1994, section 256.045, 44.1 subdivision 4, is amended to read: 44.2 Subd. 4. [CONDUCT OF HEARINGS.] All hearings held pursuant 44.3 to subdivision 3, 3a, or 4a shall be conducted according to the 44.4 provisions of the federal Social Security Act and the 44.5 regulations implemented in accordance with that act to enable 44.6 this state to qualify for federal grants-in-aid, and according 44.7 to the rules and written policies of the commissioner of human 44.8 services. County agencies shall install equipment necessary to 44.9 conduct telephone hearings. A state human services referee may 44.10 schedule a telephone conference hearing when the distance or 44.11 time required to travel to the county agency offices will cause 44.12 a delay in the issuance of an order, or to promote efficiency, 44.13 or at the mutual request of the parties. Hearings may be 44.14 conducted by telephone conferences unless the applicant, 44.15 recipient, or former recipient objects. The hearing shall not 44.16 be held earlier than five days after filing of the required 44.17 notice with the county or state agency. The state human 44.18 services referee shall notify all interested persons of the 44.19 time, date, and location of the hearing at least five days 44.20 before the date of the hearing. Interested persons may be 44.21 represented by legal counsel or other representative of their 44.22 choice, including a provider of therapy services, at the hearing 44.23 and may appear personally, testify and offer evidence, and 44.24 examine and cross-examine witnesses. The applicant, recipient, 44.25 or former recipient shall have the opportunity to examine the 44.26 contents of the case file and all documents and records to be 44.27 used by the county or state agency at the hearing at a 44.28 reasonable time before the date of the hearing and during the 44.29 hearing. Upon request, the county agency shall provide 44.30 reimbursement for transportation, child care, photocopying, 44.31 medical assessment, witness fee, and other necessary and 44.32 reasonable costs incurred by the applicant, recipient, or former 44.33 recipient in connection with the appeal. All evidence, except 44.34 that privileged by law, commonly accepted by reasonable people 44.35 in the conduct of their affairs as having probative value with 44.36 respect to the issues shall be submitted at the hearing and such 45.1 hearing shall not be "a contested case" within the meaning of 45.2 section 14.02, subdivision 3. The agency must present its 45.3 evidence prior to or at the hearing, and may not submit evidence 45.4 after the hearing except by agreement of the parties at the 45.5 hearing, provided the recipient has the opportunity to respond. 45.6 Sec. 21. Minnesota Statutes 1994, section 256.045, 45.7 subdivision 5, is amended to read: 45.8 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] A 45.9 state human services referee shall conduct a hearing on the 45.10 appeal and shall recommend an order to the commissioner of human 45.11 services. The recommended order must be based on all relevant 45.12 evidence and must not be limited to a review of the propriety of 45.13 the state or county agency's action. A referee may take 45.14 official notice of adjudicative facts. The commissioner of 45.15 human services may accept the recommended order of a state human 45.16 services referee and issue the order to the county agency and 45.17 the applicant, recipient, former recipient, or prepaid health 45.18 plan. The commissioner on refusing to accept the recommended 45.19 order of the state human services referee, shall notify the 45.20 county agency and the applicant, recipient, former recipient, or 45.21 prepaid health plan of that fact and shall state reasons 45.22 therefor and shall allow each party ten days' time to submit 45.23 additional written argument on the matter. After the expiration 45.24 of the ten-day period, the commissioner shall issue an order on 45.25 the matter to the county agency and the applicant, recipient, 45.26 former recipient, or prepaid health plan. 45.27 A party aggrieved by an order of the commissioner may 45.28 appeal under subdivision 7, or request reconsideration by the 45.29 commissioner within 30 days after the date the commissioner 45.30 issues the order. The commissioner may reconsider an order upon 45.31 request of any party or on the commissioner's own motion. A 45.32 request for reconsideration does not stay implementation of the 45.33 commissioner's order. Upon reconsideration, the commissioner 45.34 may issue an amended order or an order affirming the original 45.35 order. 45.36 Any order of the commissioner issued under this subdivision 46.1 shall be conclusive upon the parties unless appeal is taken in 46.2 the manner provided by subdivision 7. Any order of the 46.3 commissioner is binding on the parties and must be implemented 46.4 by the state agency or a county agency until the order is 46.5 reversed by the district court, or unless the commissioner or a 46.6 district court orders monthly assistance or aid or services paid 46.7 or provided under subdivision 10. 46.8 Except for a prepaid health plan, a vendor of medical care 46.9 as defined in section 256B.02, subdivision 7, or a vendor under 46.10 contract with a county agency to provide social services under 46.11 section 256E.08, subdivision 4, is not a party and may not 46.12 request a hearing or seek judicial review of an order issued 46.13 under this section, unless assisting a recipient as provided in 46.14 subdivision 4. 46.15 Sec. 22. Minnesota Statutes 1994, section 256.98, 46.16 subdivision 1, is amended to read: 46.17 Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person 46.18 who obtains, or attempts to obtain, or aids or abets any person 46.19 to obtain by means of a willfully false statement or 46.20 representation, by intentional concealment of a material fact, 46.21 or by impersonation or other fraudulent device, assistance to 46.22 which the person is not entitled or assistance greater than that 46.23 to which the person is entitled, or who knowingly aids or abets 46.24 in buying or in any way disposing of the property of a recipient 46.25 or applicant of assistance without the consent of the county 46.26 agency with intent to defeat the purposes of sections 46.27 256.12, 256.031 to 256.0361, 256.72 to 256.871, and chapter 46.28 256B, or all of these sections is guilty of theft and shall be 46.29 sentenced pursuant to section 609.52, subdivision 3, clauses 46.30 (2), (3)(a) and (c), (4), and (5). 46.31 Sec. 23. Minnesota Statutes 1994, section 256.98, 46.32 subdivision 8, is amended to read: 46.33 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 46.34 to be guilty of wrongfully obtaining assistance by a federal or 46.35 state court or by an administrative hearing determination, or 46.36 waiver thereof, through a disqualification consent agreement, or 47.1 as part of any approved diversion plan under section 401.065 in 47.2eitherthe aid to families with dependent children programor, 47.3 the food stamp program, the Minnesota family investment plan, 47.4 the general assistance or family general assistance program, the 47.5 Minnesota supplemental aid program, or the work readiness 47.6 program shall be disqualified from that program. The needs of 47.7 that individual shall not be taken into consideration in 47.8 determining the grant level for that assistance unit: 47.9 (1) for six months after the first offense; 47.10 (2) for 12 months after the second offense; and 47.11 (3) permanently after the third or subsequent offense. 47.12AnyThe periodfor which sanctions are imposed is47.13effective,of program disqualification shall begin on the date 47.14 stipulated on the advance notice of disqualification without 47.15 possibility of postponement for administrative stay,or 47.16 administrative hearing and shall continue through completion 47.17 unless and until the findings upon which the sanctions were 47.18 imposed are reversed by a court of competent jurisdiction. The 47.19 period for which sanctions are imposed is not subject to 47.20 review. The sanctions provided under this subdivision are in 47.21 addition to, and not in substitution for, any other sanctions 47.22 that may be provided for by law for the offense 47.23 involved. Notwithstanding clauses (1) to (3), the 47.24 disqualification period shall not begin until the disqualified 47.25 individual establishes that they are otherwise eligible for the 47.26 program which is the subject of the disqualification. 47.27 Sec. 24. Minnesota Statutes 1994, section 256.983, 47.28 subdivision 4, is amended to read: 47.29 Subd. 4. [FUNDING.] (a) Every involved county agency shall 47.30 either have in place or obtain an approved contract which meets 47.31 all federal requirements necessary to obtain enhanced federal 47.32 funding for its welfare fraud control and fraud prevention 47.33 investigation programs. County agency reimbursement shall be 47.34 made through the settlement provisions applicable to the aid to 47.35 families with dependent children and food stamp programs. 47.36 (b) After allowing an opportunity to establish compliance, 48.1 the commissioner will deny administrative reimbursement if for 48.2 any three-month period during any grant year, a county agency 48.3 fails to comply with fraud investigation guidelines, or fails to 48.4 meet the cost-effectiveness standards developed by the 48.5 commissioner. This result is contingent on the commissioner 48.6 providing written notice, including an offer of technical 48.7 assistance, within 30 days of the end of the third or subsequent 48.8 month of noncompliance. The county agency shall be required to 48.9 submit a corrective action plan to the commissioner within 30 48.10 days of receipt of a notice of noncompliance. Failure to submit 48.11 a corrective action plan or, continued deviation from standards 48.12 of more than ten percent after submission of a corrective action 48.13 plan, will result in denial of funding for each subsequent month 48.14 during the grant year or billing the county agency for fraud 48.15 prevention investigation (FPI) service provided by the 48.16 commissioner. The denial of funding shall apply to the general 48.17 settlement received by the county agency on a quarterly basis 48.18 and shall not reduce the grant amount applicable to the FPI 48.19 project. 48.20 Sec. 25. Minnesota Statutes 1994, section 256.983, is 48.21 amended by adding a subdivision to read: 48.22 Subd. 5. [FRAUD PREVENTION INVESTIGATION; FPI PROGRAM 48.23 EXPANSION; PILOT PROJECT.] (a) Within the limits of available 48.24 appropriations and to the extent either required or authorized 48.25 by applicable federal regulations, the commissioner of human 48.26 services shall fund a two year pilot project to test the 48.27 effectiveness of expanding the Fraud Prevention Investigation 48.28 (FPI) Program to all remaining counties regardless of county 48.29 AFDC case load size. Investigative staff shall be required to 48.30 provide FPI services to financial assistance staff in all 48.31 counties within FPI districts established by the commissioner. 48.32 (b) FPI district services providers shall be selected based 48.33 on responses to requests for proposals issued by the 48.34 commissioner. If proposals are not submitted or do not meet 48.35 standards set forth in the request for proposal, the 48.36 commissioner may provide or contract for FPI district service 49.1 providers. Nothing in this initiative shall preclude existing 49.2 counties currently operating an FPI program from submitting 49.3 proposals to become district service providers. 49.4 (c) County agency financial assistance staff assigned to 49.5 each FPI district shall comply with FPI program operational 49.6 guidelines as set forth by the commissioner in section 256.986, 49.7 subdivisions 1 to 4. 49.8 (d) Optionally, qualifying counties may apply for funding 49.9 under section 256.986 to operate an FPI program pursuant to 49.10 section 256.983. 49.11 Sec. 26. [256.986] [FRAUD CONTROL; PROGRAM INTEGRITY 49.12 REINVESTMENT PROJECT.] 49.13 Subdivision 1. [PROGRAM ESTABLISHED.] Within the limits of 49.14 available state and federal appropriations, and to the extent 49.15 required or authorized by applicable federal regulations, the 49.16 commissioner of human services shall make funding available to 49.17 county agencies for the establishment of program integrity 49.18 reinvestment initiatives. The project shall initially be 49.19 limited to those county agencies participating in federally 49.20 funded optional fraud control programs as of January 1, 1995. 49.21 Subd. 2. [COUNTY PROPOSALS.] Each included county shall 49.22 develop and submit annual funding, staffing, and operating grant 49.23 proposals to the commissioner no later than April 30 of each 49.24 year. For the first operating year only, the proposal shall be 49.25 submitted no later than October 30. Each proposal shall provide 49.26 information on: (a) the staffing and funding of the fraud 49.27 investigation and prosecution operations; (b) job descriptions 49.28 for agency fraud control staff; (c) contracts covering outside 49.29 investigative agencies; (d) operational methods to integrate the 49.30 use of fraud prevention investigation techniques; and (e) 49.31 administrative disqualification hearings and diversions into the 49.32 existing county fraud control and prosecution procedures. 49.33 Subd. 3. [DEPARTMENT RESPONSIBILITIES.] The commissioner 49.34 shall provide written instructions outlining the contents of the 49.35 proposals to be submitted under this section. Instructions 49.36 shall be made available 30 days prior to the date by which 50.1 proposals under subdivision 2 must be submitted. The 50.2 commissioner shall establish training programs which shall be 50.3 attended by fraud control staff of all involved counties. The 50.4 commissioner shall also develop the necessary operational 50.5 guidelines, forms, and reporting mechanisms which shall be used 50.6 by the involved counties. 50.7 Subd. 4. [STANDARDS.] The commissioner shall establish 50.8 standards governing the performance levels of involved county 50.9 investigative units based on grant agreements negotiated with 50.10 the involved county agencies. The standards shall take into 50.11 consideration and may include investigative caseloads, grant 50.12 savings levels, the comparison of fraud prevention and 50.13 prosecution directed investigations, utilization levels of 50.14 administrative disqualification hearings, the timely reporting 50.15 and implementation of disqualifications, and the timeliness of 50.16 reports received from prosecutors. 50.17 Subd. 5. [FUNDING.] (a) Grant funds are intended to help 50.18 offset the reduction in federal financial participation to 50 50.19 percent and may be apportioned to the participating counties 50.20 whenever feasible, and within the commissioner's discretion, to 50.21 achieve this goal. State funding shall be made available 50.22 contingent on counties submitting a plan that is approved by the 50.23 department of human services. Failure or delay in obtaining 50.24 that approval shall not, however, eliminate the obligation to 50.25 maintain fraud control efforts at the January 1, 1995, level. 50.26 Additional counties may be added to the project to the extent 50.27 that funds are subsequently made available. Every involved 50.28 county must meet all federal requirements necessary to obtain 50.29 federal funding for its welfare fraud control and prevention 50.30 programs. County agency reimbursement shall be made through the 50.31 settlement provisions applicable to the AFDC and food stamp 50.32 programs. 50.33 (b) Should a county agency fail to comply with the 50.34 standards set, or fail to meet cost-effectiveness standards 50.35 developed by the commissioner for three months during any grant 50.36 year, the commissioner shall deny reimbursement or 51.1 administrative costs, after allowing an opportunity to establish 51.2 compliance. 51.3 (c) Any denial of reimbursement under clause (b) is 51.4 contingent on the commissioner providing written notice, 51.5 including an offer of technical assistance, within 30 days of 51.6 the end of the third or subsequent months of noncompliance. The 51.7 county agency shall be required to submit a corrective action 51.8 plan to the commissioner within 30 days of receipt of a notice 51.9 of noncompliance. Failure to submit a corrective action plan or 51.10 continued deviation from standards of more than ten percent 51.11 after submission of corrective action plan, will result in 51.12 denial of funding for each such month during the grant year, or 51.13 billing the county agency for program integrity reinvestment 51.14 project services provided by the commissioner. The denial of 51.15 funding shall apply to the general settlement received by the 51.16 county agency on a quarterly basis and shall not reduce the 51.17 grant amount applicable to the program integrity reinvestment 51.18 project. 51.19 Sec. 27. [256.9861] [ASSISTANCE TRANSACTION CARD FEE.] 51.20 Subdivision 1. [REPLACEMENT CARD.] The commissioner of 51.21 human services may charge a cardholder, defined as a person in 51.22 whose name the transaction card was issued, a $2 fee to replace 51.23 an assistance transaction card. The fees shall be appropriated 51.24 to the commissioner and used for electronic benefit purposes. 51.25 Subd. 2. [TRANSACTION FEE.] The commissioner may charge 51.26 transaction fees in accordance with this subdivision up to a 51.27 maximum of $10 in transaction fees per cardholder per month. In 51.28 a given month, the first four cash withdrawals made by an 51.29 individual cardholder are free. For subsequent cash 51.30 withdrawals, $1 may be charged. No transaction fee can be 51.31 charged if the card is used to purchase goods or services on a 51.32 point of sale basis. A transaction fee subsequently set by the 51.33 federal government may supersede a fee established under this 51.34 subdivision. The fees shall be appropriated to the commissioner 51.35 and used for electronic benefit purposes. 51.36 Sec. 28. Minnesota Statutes 1994, section 256E.08, 52.1 subdivision 8, is amended to read: 52.2 Subd. 8. [REPORTING BY COUNTIES.] Beginning in calendar 52.3 year 1980 each county shall submit to the commissioner of human 52.4 services a financial accounting of the county's community social 52.5 services fund, and other data required by the commissioner under 52.6 section 256E.05, subdivision 3, paragraph (g), shall include: 52.7 (a) A detailed statement of income and expenses 52.8 attributable to the fund in the preceding quarter; and 52.9 (b) A statement of the source and application of all money 52.10 used for social services programs by the county during the 52.11 preceding quarter, including thenumber of clients served and52.12 expenditures for each service provided, as required by the 52.13 commissioner of human services. 52.14 In addition, each county shall submit to the commissioner 52.15 of human services no later than February 15 of each year, a 52.16 detailed balance sheet of the community social development fund 52.17 for the preceding calendar year. 52.18 If county boards have joined or designated human service 52.19 boards for purposes of providing community social services 52.20 programs, the county boards may submit a joint statement or the 52.21 human service board shall submit the statement, as applicable. 52.22 Sec. 29. [MCLEOD COUNTY; COUNTY OFFICES OUTSIDE COUNTY 52.23 SEAT.] 52.24 Notwithstanding Minnesota Statutes, section 382.04 to the 52.25 contrary, the McLeod county auditor, treasurer, social service 52.26 director, and recorder may temporarily office at a location in 52.27 Glencoe township. The authority provided in this section 52.28 expires six years after final enactment. 52.29 Sec. 30. [EFFECTIVE DATE.] 52.30 Subdivision 1. Sections 3 to 13 (245A.03, subd. 2a; 52.31 245A.035, subd. 1-6; 245A.04, subd. 3; 245A.04, subd. 3b; 52.32 245A.04, subd. 7; 245A.04, subd. 9; 245A.06, subd. 2; 245A.06, 52.33 subd. 4; 245A.06, subd. 7; 245A.07, subd. 3; 245A.14, subd. 6) 52.34 are effective the day following final enactment. 52.35 Subd. 2. Sections 18 (256.034, subd. 1); 22 (256.98, subd. 52.36 1); and 23 (256.98, subd. 8), are effective July 1, 1995. 53.1 Subd. 3. Under Minnesota Statutes, section 645.023, 53.2 subdivision 1, clause (a), section 29 takes effect, without 53.3 local approval, the day following final enactment. 53.4 ARTICLE 3 53.5 LIFE SKILLS; SELF-SUFFICIENCY 53.6 Section 1. Minnesota Statutes 1994, section 246.23, 53.7 subdivision 2, is amended to read: 53.8 Subd. 2. [CHEMICAL DEPENDENCY TREATMENT.] The commissioner 53.9 shall maintain a regionally based, state-administered system of 53.10 chemical dependency programs. Counties may refer individuals 53.11 who are eligible for services under chapter 254B to the chemical 53.12 dependency units in the regional treatment centers. A 15 53.13 percent county share of the per diem cost of treatment is 53.14 required for individuals served within the treatment capacity 53.15 funded by direct legislative appropriation. By July 1, 1991, 53.16 the commissioner shall establish criteria for admission to the 53.17 chemical dependency units that will maximize federal and private 53.18 funding sources, fully utilize the regional treatment center 53.19 capacity, and make state-funded treatment capacity available to 53.20 counties on an equitable basis. The admission criteria may be 53.21 adopted without rulemaking. Existing rules governing placements 53.22 under chapters 254A and 254B do not apply to admissions to the 53.23 capacity funded by direct appropriation. Private and 53.24 third-party collections and payments are appropriated to the 53.25 commissioner for the operation of the chemical dependency 53.26 units. In addition to the chemical dependency treatment 53.27 capacity funded by direct legislative appropriation, the 53.28 regional treatment centers may provide treatment to additional 53.29 individuals whose treatment is paid for out of the chemical 53.30 dependency consolidated treatment fund under chapter 254B, in 53.31 which case placement rules adopted under chapter 254B apply,; to 53.32 those individuals who are ineligible but committed for treatment 53.33 under chapter 253B as provided in section 254B.05, subdivision 53.34 4; or to individuals covered through other nonstate payment 53.35 sources. 53.36 Sec. 2. Minnesota Statutes 1994, section 252.275, 54.1 subdivision 3, is amended to read: 54.2 Subd. 3. [REIMBURSEMENT.] Counties shall be reimbursed for 54.3 all expenditures made pursuant to subdivision 1 at a rate of 70 54.4 percent, up to the allocation determined pursuant to 54.5 subdivisions 4, 4a,and 4b. However, the commissioner shall not 54.6 reimburse costs of services for any person if the costs exceed 54.7 the state share of the average medical assistance costs for 54.8 services provided by intermediate care facilities for a person 54.9 with mental retardation or a related condition for the same 54.10 fiscal year, and shall not reimburse costs of a one-time living 54.11 allowance for any person if the costs exceed $1,500 in a state 54.12 fiscal year.For the biennium ending June 30, 1993, the54.13commissioner shall not reimburse costs in excess of the 85th54.14percentile of hourly service costs based upon the cost54.15information supplied to the legislature in the proposed budget54.16for the biennium.The commissioner may make payments to each 54.17 county in quarterly installments. The commissioner may certify 54.18 an advance of up to 25 percent of the allocation. Subsequent 54.19 payments shall be made on a reimbursement basis for reported 54.20 expenditures and may be adjusted for anticipated spending 54.21 patterns. 54.22 Sec. 3. Minnesota Statutes 1994, section 252.275, 54.23 subdivision 4, is amended to read: 54.24 Subd. 4. [FORMULA.]Effective January 1, 1992,The 54.25 commissioner shall allocate funds on a calendar year basis.For54.26calendar year 1992, funds shall be allocated based on each54.27county's portion of the statewide reimbursement received under54.28this section for state fiscal year 1991. For subsequent54.29calendar years, funds shall beBeginning with the calendar year 54.30 in the 1996 grant period, funds shall be allocated first in 54.31 amounts equal to each county's guaranteed floor according to 54.32 subdivision 4b, with any remaining available funds allocated 54.33 based on each county's portion of the statewide expenditures 54.34 eligible for reimbursement under this section during the 12 54.35 months ending on June 30 of the preceding calendar year. 54.36 If the legislature appropriates funds for special purposes, 55.1 the commissioner may allocate the funds based on proposals 55.2 submitted by the counties to the commissioner in a format 55.3 prescribed by the commissioner. Nothing in this section 55.4 prevents a county from using other funds to pay for additional 55.5 costs of semi-independent living services. 55.6 Sec. 4. Minnesota Statutes 1994, section 252.275, 55.7 subdivision 8, is amended to read: 55.8 Subd. 8. [USE OF FEDERAL FUNDS AND TRANSFER OF FUNDS TO 55.9 MEDICAL ASSISTANCE.] (a) The commissioner shall make every 55.10 reasonable effort to maximize the use of federal funds for 55.11 semi-independent living services. 55.12 (b) The commissioner shall reduce the payments to be made 55.13 under this section to each county from January 1, 1994 to June 55.14 30, 1996, by the amount of the state share of medical assistance 55.15 reimbursement for services other than residential services 55.16 provided under the home and community-based waiver program under 55.17 section 256B.092 from January 1, 1994 to June 30, 1996, for 55.18 clients for whom the county is financially responsible and who 55.19 have been transferred by the county from the semi-independent 55.20 living services program to the home and community-based waiver 55.21 program. Unless otherwise specified, all reduced amounts shall 55.22 be transferred to the medical assistance state account. 55.23 (c) For fiscal year 1997, the base appropriation available 55.24 under this section shall be reduced by the amount of the state 55.25 share of medical assistance reimbursement for services other 55.26 than residential services provided under the home and 55.27 community-based waiver program authorized in section 256B.092 55.28 from January 1, 1995 to December 31, 1995, for persons who have 55.29 been transferred from the semi-independent living services 55.30 program to the home and community-based waiver program. The 55.31 base appropriation for the medical assistance state account 55.32 shall be increased by the same amount. 55.33 (d) For purposes of calculating the guaranteed floor under 55.34 subdivision 4b and to establish the calendar year 1996 55.35 allocations, each county's original allocation for calendar year 55.36 1995 shall be reduced by the amount transferred to the state 56.1 medical assistance account under paragraph (b) during the six 56.2 months ending on June 30, 1995. For purposes of calculating the 56.3 guaranteed floor under subdivision 4b and to establish the 56.4 calendar year 1997 allocations, each county's original 56.5 allocation for calendar year 1996 shall be reduced by the amount 56.6 transferred to the state medical assistance account under 56.7 paragraph (b) during the six months ending onJune 30, 199656.8 December 31, 1995. 56.9 Sec. 5. Minnesota Statutes 1994, section 252.292, 56.10 subdivision 4, is amended to read: 56.11 Subd. 4. [FACILITY RATES.] For purposes of this section, 56.12 the commissioner shall establish payment rates under section 56.13 256B.501 and Minnesota Rules, parts 9553.0010 to 9553.0080, 56.14 except that, in order to facilitate an orderly transition of 56.15 residents from community intermediate care facilities for 56.16 persons with mental retardation or related conditions to 56.17 services provided under the home and community-based services 56.18 program, the commissioner may, in a contract with the provider, 56.19 modify the effect of provisions in Minnesota Rules, parts 56.20 9553.0010 to 9553.0080, as stated in clauses (a) to (i): 56.21 (a) extend the interim and settle-up rate provisions to 56.22 include facilities covered by this section; 56.23 (b) extend the length of the interim period but not to 56.24 exceed2412 months. The commissioner may grant a variance to 56.25 exceed the24-month12-month interim period, as necessary, for 56.26 facilities which are licensed and certified to serve more than 56.27 99 persons. In no case shall the commissioner approve an 56.28 interim period which exceeds3624 months; 56.29 (c) waive the investment per bed limitations for the 56.30 interim period and the settle-up rate; 56.31 (d) limit the amount of reimbursable expenses related to 56.32 the acquisition of new capital assets; 56.33 (e) prohibit the acquisition of additional capital debt or 56.34 refinancing of existing capital debt unless prior approval is 56.35 obtained from the commissioner; 56.36 (f) establish an administrative operating cost limitation 57.1 for the interim period and the settle-up rate; 57.2 (g) require the retention of financial and statistical 57.3 records until the commissioner has audited the interim period 57.4 and the settle-up rate; 57.5 (h) require that the interim period be audited by a 57.6 certified or licensed public accounting firm; or 57.7 (i) change any other provision to which all parties to the 57.8 contract agree. 57.9 Sec. 6. Minnesota Statutes 1994, section 252.46, 57.10 subdivision 1, is amended to read: 57.11 Subdivision 1. [RATES.] (a) Payment rates to vendors, 57.12 except regional centers, for county-funded day training and 57.13 habilitation services and transportation provided to persons 57.14 receiving day training and habilitation services established by 57.15 a county board are governed by subdivisions 2 to 19. The 57.16 commissioner shall approve the following three payment rates for 57.17 services provided by a vendor: 57.18 (1) a full-day service rate for persons who receive at 57.19 least six service hours a day, including the time it takes to 57.20 transport the person to and from the service site; 57.21 (2) a partial-day service rate that must not exceed 75 57.22 percent of the full-day service rate for persons who receive 57.23 less than a full day of service; and 57.24 (3) a transportation rate for providing, or arranging and 57.25 paying for, transportation of a person to and from the person's 57.26 residence to the service site. 57.27 (b) The commissioner may also approve an hourly job-coach, 57.28 follow-along rate for services provided by one employee en route 57.29 to or from community locations to supervise, support, and assist 57.30 one person receiving the vendor's services to learn job-related 57.31 skills necessary to obtain or retain employment when and where 57.32 no other persons receiving services are present and when all the 57.33 following criteria are met: 57.34 (1) the vendor requests and the county recommends the 57.35 optional rate; 57.36 (2) the service is prior authorized by the county on the 58.1 medicaid management information system for no more than 414 58.2 hours in a 12-month period and the daily per person charge to 58.3 medical assistance does not exceed the vendor's approved full 58.4 day plus transportation rates; 58.5 (3) separate full day, partial day, and transportation 58.6 rates are not billed for the same person on the same day; 58.7 (4) the approved hourly rate does not exceed the sum of the 58.8 vendor's current average hourly direct service wage, including 58.9 fringe benefits and taxes, plus a component equal to the 58.10 vendor's average hourly nondirect service wage expenses; and 58.11 (5) the actual revenue received for provision of hourly 58.12 job-coach, follow-along services is subtracted from the vendor's 58.13 total expenses for the same time period and those adjusted 58.14 expenses are used for determining recommended full day and 58.15 transportation payment rates under subdivision 5 in accordance 58.16 with the limitations in subdivision 3. 58.17 (c) Medical assistance rates for home and community-based 58.18 service provided under section 256B.501, subdivision 4, by 58.19 licensed vendors of day training and habilitation services must 58.20 not be greater than the rates for the same services established 58.21 by counties under sections 252.40 to 252.47. For very dependent 58.22 persons with special needs the commissioner may approve an 58.23 exception to the approved payment rate under section 256B.501, 58.24 subdivision 4 or 8. 58.25 Sec. 7. Minnesota Statutes 1994, section 252.46, 58.26 subdivision 3, is amended to read: 58.27 Subd. 3. [RATE MAXIMUM.] Unless a variance is granted 58.28 under subdivision 6, the maximum payment rates for each vendor 58.29 for a calendar year must be equal to the payment rates approved 58.30 by the commissioner for that vendor in effect December 1 of the 58.31 previous calendar year. The commissioner of finance shall 58.32 include as a budget change request in each biennial detailed 58.33 expenditure budget submitted to the legislature under section 58.34 16A.11 annual inflation adjustments in reimbursement rates for 58.35 each vendor, based upon the projected percentage change in the 58.36 urban consumer price index, all items, published by the United 59.1 States Department of Labor, for the upcoming calendar year over 59.2 the current calendar year.The commissioner shall not provide59.3an annual inflation adjustment for the biennium ending June 30,59.41993.59.5 Sec. 8. Minnesota Statutes 1994, section 252.46, 59.6 subdivision 6, is amended to read: 59.7 Subd. 6. [VARIANCES.](a)A variance from the minimum or 59.8 maximum payment rates in subdivisions 2 and 3 may be granted by 59.9 the commissioner when the vendor requests and the county board 59.10 submits to the commissioner a written variance request on forms 59.11 supplied by the commissioner with the recommended payment rates. 59.12 (a) A variance to the rate maximum may be utilized for 59.13 costs associated with compliance with state administrative 59.14 rules, compliance with court orders, capital costs required for 59.15 continued licensure, increased insurance costs, start-up and 59.16 conversion costs for supported employment, direct service staff 59.17 salaries and benefits, transportation, and other program related 59.18 costs when any of the criteria in clauses (1)to (3)and (2) is 59.19 also met: 59.20 (1) change is necessary to comply with licensing citations; 59.21 or 59.22 (2) a significant change is approved by the commissioner 59.23 under section 252.28 that is necessary to provide authorized 59.24 services to new clients with very severe self-injurious or 59.25 assaultive behavior, or medical conditions requiring delivery of 59.26 physician-prescribed medical interventions requiring one-to-one 59.27 staffing for at least 15 minutes each time they are performed, 59.28 or to new clients directly discharged to the vendor's program 59.29 from a regional treatment center; or59.30 (3) a significant increase in the average level of staffing 59.31 is needed to provide authorized services approved by the 59.32 commissioner under section 252.28, that is necessitated by a 59.33 decrease in licensed capacity or loss of clientele when counties 59.34 choose alternative services under Laws 1992, chapter 513, 59.35 article 9, section 41. 59.36 A variance under this paragraph may be approved only if the 60.1 costs to the medical assistance program do not exceed the 60.2 medical assistance costs for all clients served by the 60.3 alternatives and all clients remaining in the existing services. 60.4 (b) A variance to the rate minimum may be granted when (1) 60.5 the county board contracts for increased services from a vendor 60.6 and for some or all individuals receiving services from the 60.7 vendor lower per unit fixed costs result or (2) when the actual 60.8 costs of delivering authorized service over a 12-month contract 60.9 period have decreased. 60.10 (c) The written variance request under this subdivision 60.11 must include documentation that all the following criteria have 60.12 been met: 60.13 (1) The commissioner and the county board have both 60.14 conducted a review and have identified a need for a change in 60.15 the payment rates and recommended an effective date for the 60.16 change in the rate. 60.17 (2) The vendor documents efforts to reallocate current 60.18 staff and any additional staffing needs cannot be met by using 60.19 temporary special needs rate exceptions under Minnesota Rules, 60.20 parts 9510.1020 to 9510.1140. 60.21 (3) The vendor documents that financial resources have been 60.22 reallocated before applying for a variance. No variance may be 60.23 granted for equipment, supplies, or other capital expenditures 60.24 when depreciation expense for repair and replacement of such 60.25 items is part of the current rate. 60.26 (4) For variances related to loss of clientele, the vendor 60.27 documents the other program and administrative expenses, if any, 60.28 that have been reduced. 60.29 (5) The county board submits verification of the conditions 60.30 for which the variance is requested, a description of the nature 60.31 and cost of the proposed changes, and how the county will 60.32 monitor the use of money by the vendor to make necessary changes 60.33 in services. 60.34 (6) The county board's recommended payment rates do not 60.35 exceed 95 percent of the greater of 125 percent of the current 60.36 statewide median or 125 percent of the regional average payment 61.1 rates, whichever is higher, for each of the regional commission 61.2 districts under sections 462.381 to 462.396 in which the vendor 61.3 is located except for the following: when a variance is 61.4 recommended to allow authorized service delivery to new clients 61.5 with severe self-injurious or assaultive behaviors or with 61.6 medical conditions requiring delivery of physician prescribed 61.7 medical interventions, or to persons being directly discharged 61.8 from a regional treatment center to the vendor's program, those 61.9 persons must be assigned a payment rate of 200 percent of the 61.10 current statewide average rates. All other clients receiving 61.11 services from the vendor must be assigned a payment rate equal 61.12 to the vendor's current rate unless the vendor's current rate 61.13 exceeds 95 percent of 125 percent of the statewide median or 125 61.14 percent of the regional average payment rates, whichever is 61.15 higher. When the vendor's rates exceed 95 percent of 125 61.16 percent of the statewide median or 125 percent of the regional 61.17 average rates, the maximum rates assigned to all other clients 61.18 must be equal to the greater of 95 percent of 125 percent of the 61.19 statewide median or 125 percent of the regional average rates. 61.20 The maximum payment rate that may be recommended for the vendor 61.21 under these conditions is determined by multiplying the number 61.22 of clients at each limit by the rate corresponding to that limit 61.23 and then dividing the sum by the total number of clients. 61.24 (7) The vendor has not received a variance under this 61.25 subdivision in the past 12 months. 61.26 (d) The commissioner shall have 60 calendar days from the 61.27 date of the receipt of the complete request to accept or reject 61.28 it, or the request shall be deemed to have been granted. If the 61.29 commissioner rejects the request, the commissioner shall state 61.30 in writing the specific objections to the request and the 61.31 reasons for its rejection. 61.32 Sec. 9. Minnesota Statutes 1994, section 252.46, 61.33 subdivision 17, is amended to read: 61.34 Subd. 17. [HOURLY RATE STRUCTURE.] Counties participating 61.35 as host counties under the pilot study of hourly rates 61.36 established under Laws 1988, chapter 689, article 2, section 62.1 117, may recommend continuation of the hourly rates for 62.2 participating vendors. The recommendation must be made annually 62.3 under subdivision 5 and according to the methods and standards 62.4 provided by the commissioner. The commissioner shall approve 62.5 the hourly rates when service authorization, billing, and 62.6 payment for services is possible through the Medicaid management 62.7 information system and the other criteria in this subdivision 62.8 are met. Counties and vendors operating under the pilot study 62.9 of hourly rates established under Laws 1988, chapter 689, 62.10 article 2, section 117, shall work with the commissioner to 62.11 translate the hourly rates and actual expenditures into rates 62.12 meeting the criteria in subdivisions 1 to 16 unless hourly rates 62.13 are approved under this subdivision. If the rates meeting the 62.14 criteria in subdivisions 1 to 16 are lower than the county's or 62.15 vendor's current rate, the county or vendor must continue to 62.16 receive the current rate. 62.17 Sec. 10. Minnesota Statutes 1994, section 252.46, is 62.18 amended by adding a subdivision to read: 62.19 Subd. 19. [STUDY OF VENDORS.] The commissioner shall study 62.20 the feasibility of grouping vendors of similar size, location, 62.21 direct service staffing needs or performance outcomes to 62.22 establish payment rate limits that define cost-effective 62.23 service. Based on the conclusions of the feasibility study the 62.24 department shall consider developing a method to redistribute 62.25 dollars from less cost effective to more cost-effective services 62.26 based on vendor achievement of performance outcomes. The 62.27 department shall report to the legislature by January 15, 1996, 62.28 with results of the study and recommendations for further 62.29 action. The department shall consult with an advisory committee 62.30 representing counties, service consumers, vendors, and the 62.31 legislature. 62.32 Sec. 11. Minnesota Statutes 1994, section 252.46, is 62.33 amended by adding a subdivision to read: 62.34 Subd. 20. [VENDOR APPEALS.] With the concurrence of the 62.35 county board, a vendor may appeal the commissioner's rejection 62.36 of a variance request which has been submitted by the county 63.1 under subdivision 6 and may appeal the commissioner's denial 63.2 under subdivision 9 of a rate which has been recommended by the 63.3 county. To appeal, the vendor and county board must file a 63.4 written notice of appeal with the commissioner. The notice of 63.5 appeal must be filed or received by the commissioner within 45 63.6 days of the postmark date on the commissioner's notification to 63.7 the vendor and county agency that a variance request or county 63.8 recommended rate has been denied. The notice of appeal must 63.9 specify the reasons for the appeal, the dollar amount in 63.10 dispute, and the basis in statute or rule for challenging the 63.11 commissioner's decision. 63.12 Within 45 days of receipt of the notice of appeal, the 63.13 commissioner must convene a reconciliation conference to attempt 63.14 to resolve the rate dispute. If the dispute is not resolved to 63.15 the satisfaction of the parties, the parties may initiate a 63.16 contested case proceeding under sections 14.57 to 14.69. In a 63.17 contested case hearing held under this section, the appealing 63.18 party must demonstrate by a preponderance of the evidence that 63.19 the commissioner incorrectly applied the governing law or 63.20 regulations, or that the commissioner improperly exercised the 63.21 commissioner's discretion, in refusing to grant a variance or in 63.22 refusing to adopt a county recommended rate. 63.23 Until an appeal is fully resolved, payments must continue 63.24 at the existing rate pending the results of the appeal. 63.25 Retroactive payments consistent with the final decision shall be 63.26 made after the appeal is fully resolved. 63.27 Sec. 12. [252.60] [LOCALLY MANAGED INTEGRATED FUND 63.28 DEMONSTRATION PILOT PROJECT.] 63.29 Subdivision 1. [PURPOSE.] In order to demonstrate 63.30 substantial change in the management and delivery of services to 63.31 persons with mental retardation or related conditions, the 63.32 commissioner of human services may cooperatively establish pilot 63.33 projects with county agencies that are proposed and designed by 63.34 local planning groups that include county and provider agencies, 63.35 consumers, and advocacy agencies. The pilot projects are to 63.36 determine whether a locally managed integrated funding model 64.1 covering services for persons with mental retardation or related 64.2 conditions is an effective mechanism to achieve the outcomes 64.3 prescribed in Laws 1993, First Special Session chapter 1, 64.4 article 4, section 12, regarding: (1) comprehensive reform; (2) 64.5 service access and coordination; and (3) regulatory standards 64.6 and quality assurance. These pilot projects shall result in a 64.7 locally managed service system characterized by increased 64.8 consumer choice, flexibility in the types and delivery methods 64.9 of services, improved access to and coordination and continuity 64.10 of services, streamlined and unified regulations and controls, 64.11 and enhanced cost controls. For purposes of this project, 64.12 waiver of certain statutory provisions is necessary in 64.13 accordance with this section. The commissioner shall seek all 64.14 federal waivers as necessary to implement this section. 64.15 Subd. 2. [DEFINITIONS.] (a) "Eligible persons" means 64.16 individuals who reside within the geographic area designated 64.17 under subdivision 3 and who are otherwise eligible as defined in 64.18 section 256B.092. Other persons with a developmental disability 64.19 as defined in United States Code, title 42, section 6001, may be 64.20 determined eligible by the local managing entity to participate 64.21 in these pilots. 64.22 (b) "Local managing entity" means the agency or alliance of 64.23 agencies under contract with the Minnesota department of human 64.24 services and participating in each local demonstration project 64.25 that manages the resources and the delivery of services to 64.26 eligible individuals. 64.27 Subd. 3. [GEOGRAPHIC AREA.] The commissioner shall 64.28 designate the geographic areas in which eligible individuals and 64.29 organizations will be included in the project. 64.30 Subd. 4. [PAYMENT.] The commissioner shall establish the 64.31 method and amount of payments and prepayments for the management 64.32 and delivery of services. The managing entity may integrate 64.33 these funds with local resources appropriated for services to 64.34 persons with mental retardation or related conditions and may 64.35 require transfer of resources from other county agencies for 64.36 eligible persons who reside within the geographic area and who 65.1 are the financial responsibility of another county. The 65.2 commissioner shall contract with the local managing entity and 65.3 the contract shall be consistent with these established methods 65.4 and amounts for payment. 65.5 Subd. 5. [SERVICE DELIVERY.] Each managing entity shall be 65.6 responsible for management and delivery of services for eligible 65.7 individuals within their geographic area. Managing entities: 65.8 (1) shall accept the prospective, per capita payment from 65.9 the commissioner in return for the provision of comprehensive 65.10 and coordinated services for eligible individuals enrolled in 65.11 the project; 65.12 (2) may contract with health care, long-term care, and 65.13 other providers to serve eligible persons enrolled in the 65.14 project; and 65.15 (3) may integrate state, federal, and county resources into 65.16 an account and draw funding from this single source to purchase 65.17 or provide services for eligible persons. 65.18 Subd. 6. [REPORTING.] Each participating local managing 65.19 entity shall submit information as required by the commissioner, 65.20 including data required for assessing client satisfaction, 65.21 quality of care, cost, and utilization of services for purposes 65.22 of project evaluation. 65.23 Subd. 7. [ALTERNATIVE METHODS.] Upon federal waiver 65.24 approval to proceed with these pilots, the commissioner may 65.25 approve alternative methods to meet the intent of existing rules 65.26 and statutes relating to services for eligible persons. Prior 65.27 to approving alternative methods that meet the intent of 65.28 existing rule or statute, including rights and procedural 65.29 protections under sections 245.825; 245.91 to 245.97; 252.41, 65.30 subdivision 9; 256.045; 256B.092; 626.556; and 626.557, and the 65.31 county agency's responsibility to arrange for appropriate 65.32 services and procedures for the monitoring of psychotropic 65.33 medications, the commissioner shall notify the chairs of health 65.34 and human services policy and finance committees within 30 days 65.35 of receiving federal waiver approval, whether alternative 65.36 methods to specific statutes need to be used in order to 66.1 accomplish the goals of the pilots. The commissioner shall 66.2 report to the legislature by February 1, 1996, on the status of 66.3 the federal waiver request and, if the federal waiver is being 66.4 implemented on that date, on the nature of any alternative 66.5 methods being used for client protection. 66.6 Subd. 8. [NUMBER OF GRANTS.] For the biennium ending June 66.7 30, 1997, up to three pilot projects may be operational, and the 66.8 commissioner may provide planning grants for up to three 66.9 additional local planning groups to expand the projects in the 66.10 next biennium. 66.11 Sec. 13. Minnesota Statutes 1994, section 254A.17, 66.12 subdivision 3, is amended to read: 66.13 Subd. 3. [STATEWIDE DETOXIFICATION TRANSPORTATION 66.14 PROGRAM.] The commissioner shall provide grants to counties, 66.15 Indian reservations, other nonprofit agencies, or local 66.16 detoxification programs for provision of transportation of 66.17 intoxicated individuals to detoxification programs, to open 66.18 shelters, and to secure shelters as defined in section 254A.085 66.19 and shelters serving intoxicated persons. In state fiscal years 66.20 1994and, 1995, and 1996, funds shall be allocated to counties 66.21 in proportion to each county's allocation in fiscal year 1993. 66.22 In subsequent fiscal years, funds shall be allocated among 66.23 counties annually in proportion to each county's average number 66.24 of detoxification admissions for the prior two years, except 66.25 that no county shall receive less than $400. Unless a county 66.26 has approved a grant of funds under this section, the 66.27 commissioner shall make quarterly payments of detoxification 66.28 funds to a county only after receiving an invoice describing the 66.29 number of persons transported and the cost of transportation 66.30 services for the previous quarter. A county must make a good 66.31 faith effort to provide the transportation service through the 66.32 most cost-effective community-based agencies or organizations 66.33 eligible to provide the service. The program administrator and 66.34 all staff of the program must report to the office of the 66.35 ombudsman for mental health and mental retardation within 24 66.36 hours of its occurrence, any serious injury, as defined in 67.1 section 245.91, subdivision 6, or the death of a person admitted 67.2 to the shelter. The ombudsman shall acknowledge in writing the 67.3 receipt of all reports made to the ombudsman's office under this 67.4 section. Acknowledgment must be mailed to the facility and to 67.5 the county social service agency within five working days of the 67.6 day the report was made. In addition, the program administrator 67.7 and staff of the program must comply with all of the 67.8 requirements of section 626.557, the vulnerable adults act. 67.9 Sec. 14. Minnesota Statutes 1994, section 254B.02, 67.10 subdivision 1, is amended to read: 67.11 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 67.12 The chemical dependency funds appropriated for allocation shall 67.13 be placed in a special revenue account. For the fiscal year 67.14 beginning July 1, 1987, funds shall be transferred to operate 67.15 the vendor payment, invoice processing, and collections system 67.16 for one year. The commissioner shall annually transfer funds 67.17 from the chemical dependency fund to pay for operation of the 67.18 drug and alcohol abuse normative evaluation system and to pay 67.19 for all costs incurred by adding two positions for licensing of 67.20 chemical dependency treatment and rehabilitation programs 67.21 located in hospitals for which funds are not otherwise 67.22 appropriated. The commissioner shall annually divide the money 67.23 available in the chemical dependency fund that is not held in 67.24 reserve by counties from a previous allocation. Twelve percent 67.25 of the remaining money must be reserved for treatment of 67.26 American Indians by eligible vendors under section 254B.05. The 67.27 remainder of the money must be allocated among the counties 67.28 according to the following formula, using state demographer data 67.29 and other data sources determined by the commissioner: 67.30(a) The county non-Indian and over age 14 per capita-months67.31of eligibility for aid to families with dependent children,67.32general assistance, and medical assistance is divided by the67.33total state non-Indian and over age 14 per capita-months of67.34eligibility to determine the caseload factor for each county.67.35(b) The average median married couple income for the67.36previous three years for the state is divided by the average68.1median married couple income for the previous three years for68.2each county to determine the income factor.68.3(c) The non-Indian and over age 14 population of the county68.4is multiplied by the sum of the income factor and the caseload68.5factor to determine the adjusted population.68.6 (a) For purposes of this formula, American Indians and 68.7 children under age 14 are subtracted from the population of each 68.8 county to determine the restricted population. 68.9 (b) The amount of chemical dependency fund expenditures for 68.10 entitled persons for services not covered by prepaid plans 68.11 governed by section 256B.69 in the previous year is divided by 68.12 the amount of chemical dependency fund expenditures for entitled 68.13 persons for all services to determine the proportion of exempt 68.14 service expenditures for each county. 68.15 (c) The prepaid plan months of eligibility is multiplied by 68.16 the proportion of exempt service expenditures to determine the 68.17 adjusted prepaid plan months of eligibility for each county. 68.18 (d) The adjusted prepaid plan months of eligibility is 68.19 added to the number of restricted population fee for service 68.20 months of eligibility for aid to families with dependent 68.21 children, general assistance, and medical assistance and divided 68.22 by the county restricted population to determine county per 68.23 capita months of covered service eligibility. 68.24 (e) The number of adjusted prepaid plan months of 68.25 eligibility for the state is added to the number of fee for 68.26 service months of eligibility for aid to families with dependent 68.27 children, general assistance, and medical assistance for the 68.28 state restricted population and divided by the state restricted 68.29 population to determine state per capita months of covered 68.30 service eligibility. 68.31 (f) The county per capita months of covered service 68.32 eligibility is divided by the state per capita months of covered 68.33 service eligibility to determine the county welfare caseload 68.34 factor. 68.35 (g) The median married couple income for the most recent 68.36 three-year period available for the state is divided by the 69.1 median married couple income for the same period for each county 69.2 to determine the income factor for each county. 69.3 (h) The county restricted population is multiplied by the 69.4 sum of the county welfare caseload factor and the county income 69.5 factor to determine the adjusted population. 69.6(d)(i) $15,000 shall be allocated to each county. 69.7(e)(j) The remaining funds shall be allocated proportional 69.8 to the county adjusted population. 69.9 Sec. 15. Minnesota Statutes 1994, section 254B.05, 69.10 subdivision 1, is amended to read: 69.11 Subdivision 1. [LICENSURE REQUIRED.] Programs licensed by 69.12 the commissioner are eligible vendors. Hospitals may apply for 69.13 and receive licenses to be eligible vendors, notwithstanding the 69.14 provisions of section 245A.03. American Indian programs located 69.15 on federally recognized tribal lands that provide chemical 69.16 dependency primary treatment, extended care, transitional 69.17 residence, or outpatient treatment services, and are licensed by 69.18 tribal government are eligible vendors. Detoxification programs 69.19 are not eligible vendors. Programs that are not licensed as a 69.20 chemical dependency residential or nonresidential treatment 69.21 program by the commissioner or by tribal government are not 69.22 eligible vendors. To be eligible for payment under the 69.23 Consolidated Chemical Dependency Treatment Fund, a vendor must 69.24 participate in the Drug and Alcohol Abuse Normative Evaluation 69.25 System and the treatment accountability plan. 69.26 Sec. 16. [256.476] [CONSUMER SUPPORT PROGRAM.] 69.27 Subdivision 1. [PURPOSE AND GOALS.] The commissioner of 69.28 human services shall establish a consumer support grant program 69.29 to assist individuals with functional limitations and their 69.30 families in purchasing and securing supports which the 69.31 individuals need to live as independently and productively in 69.32 the community as possible. The program shall: 69.33 (1) make support grants available to individuals or 69.34 families as an effective alternative to existing programs and 69.35 services, such as the developmental disability family support 69.36 program, the alternative care program, personal care attendant 70.1 services, home health aide services, and nursing facility 70.2 services; 70.3 (2) provide consumers more control, flexibility, and 70.4 responsibility over the needed supports; 70.5 (3) promote local program management and decision-making; 70.6 and 70.7 (4) encourage the use of informal and typical community 70.8 supports. 70.9 Subd. 2. [DEFINITIONS.] For purposes of this section, the 70.10 following terms have the meanings given them: 70.11 (a) "County board" means the county board of commissioners 70.12 for the county of financial responsibility as defined in section 70.13 256G.02, subdivision 4, or its designated representative. When 70.14 a human services board has been established under sections 70.15 402.01 to 402.10, it shall be considered the county board for 70.16 the purposes of this section. 70.17 (b) "Family" means the person's birth parents, adoptive 70.18 parents or stepparents, siblings or stepsiblings, children or 70.19 stepchildren, grandparents, grandchildren, niece, nephew, aunt, 70.20 uncle, or spouse. For the purposes of this section, a family 70.21 member is at least 18 years of age. 70.22 (c) "Functional limitations" means the long-term inability 70.23 to perform an activity or task in one or more areas of major 70.24 life activity, including self-care, understanding and use of 70.25 language, learning, mobility, self-direction, and capacity for 70.26 independent living. For the purpose of this section, the 70.27 inability to perform an activity or task results from a mental, 70.28 emotional, psychological, sensory, or physical disability, 70.29 condition, or illness. 70.30 (d) "Informed choice" means a voluntary decision made by 70.31 the person or the person's legal representative, after becoming 70.32 familiarized with the alternatives to: 70.33 (1) select a preferred alternative from a number of 70.34 feasible alternatives; 70.35 (2) select an alternative which may be developed in the 70.36 future; and 71.1 (3) refuse any or all alternatives. 71.2 (e) "Local agency" means the local agency authorized by the 71.3 county board to carry out the provisions of this section. 71.4 (f) "Person" or "persons" means a person or persons meeting 71.5 the eligibility criteria in subdivision 3. 71.6 (g) "Responsible individual" means an individual designated 71.7 by the person or their legal representative to act on their 71.8 behalf. This individual may be a family member, guardian, 71.9 representative payee, or other individual designated by the 71.10 person or their legal representative, if any, to assist in 71.11 purchasing and arranging for supports. For the purposes of this 71.12 section, a responsible individual is at least 18 years of age. 71.13 (h) "Screening" means the screening of a person's service 71.14 needs under sections 256B.0911 and 256B.092. 71.15 (i) "Supports" means services, care, aids, home 71.16 modifications, or assistance purchased by the person or the 71.17 person's family. Examples of supports include respite care, 71.18 assistance with daily living, and adaptive aids. For the 71.19 purpose of this section, notwithstanding the provisions of 71.20 section 144A.43, supports purchased under the consumer support 71.21 program are not considered home care services. 71.22 Subd. 3. [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 71.23 is eligible to apply for a consumer support grant if the person 71.24 meets all of the following criteria: 71.25 (1) the person is eligible for medical assistance as 71.26 determined under sections 256B.055 and 256B.056 or the person is 71.27 eligible for alternative care services as determined under 71.28 section 256B.0913; 71.29 (2) the person is able to direct and purchase their own 71.30 care and supports, or the person has a family member, legal 71.31 representative, or other responsible individual who can purchase 71.32 and arrange supports on the person's behalf; 71.33 (3) the person has functional limitations, requires ongoing 71.34 supports to live in the community, and is at risk of or would 71.35 continue institutionalization without such supports; and 71.36 (4) the person will live in a home. For the purpose of 72.1 this section, "home" means the person's own home or home of a 72.2 person's family member. These homes are natural home settings 72.3 and are not licensed by the department of health or human 72.4 services. 72.5 (b) Persons may not concurrently receive a consumer support 72.6 grant if they are: 72.7 (1) receiving home and community-based services under 72.8 United States Code, title 42, section 1396h(c); personal care 72.9 attendant and home health aide services under section 256B.0625; 72.10 a developmental disability family support grant; or alternative 72.11 care services under section 256B.0913; or 72.12 (2) residing in an institutional or congregate care setting. 72.13 (c) A person or person's family receiving a consumer 72.14 support grant shall not be charged a fee or premium by a local 72.15 agency for participating in the program. A person or person's 72.16 family is not eligible for a consumer support grant if their 72.17 income is at a level where they are required to pay a parental 72.18 fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 72.19 and rules adopted under those sections for medical assistance 72.20 services to a disabled child living with at least one parent. 72.21 Subd. 4. [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) 72.22 The local agency shall establish written procedures and criteria 72.23 to determine the amount and use of support grants. These 72.24 procedures must include, at least, the availability of respite 72.25 care, assistance with daily living, and adaptive aids. The 72.26 local agency may establish monthly or annual maximum amounts for 72.27 grants and procedures where exceptional resources may be 72.28 required to meet the health and safety needs of the person on a 72.29 time-limited basis. 72.30 (b) Support grants to a person or a person's family may be 72.31 provided through a monthly subsidy or lump sum payment basis and 72.32 be in the form of cash, voucher, or direct county payment to 72.33 vendor. Support grant amounts must be determined by the local 72.34 agency. Each service and item purchased with a support grant 72.35 must meet all of the following criteria: 72.36 (1) it must be over and above the normal cost of caring for 73.1 the person if the person did not have functional limitations; 73.2 (2) it must be directly attributable to the person's 73.3 functional limitations; 73.4 (3) it must enable a person or the person's family to delay 73.5 or prevent out-of-home placement of the person; and 73.6 (4) it must be consistent with the needs identified in the 73.7 service plan, when applicable. 73.8 (c) Items and services purchased with support grants must 73.9 be those for which there are no other public or private funds 73.10 available to the person or the person's family. Fees assessed 73.11 to the person or the person's family for health and human 73.12 services are not reimbursable through the grant. 73.13 (d) In approving or denying applications, the local agency 73.14 shall consider the following factors: 73.15 (1) the extent and areas of the person's functional 73.16 limitations; 73.17 (2) the degree of need in the home environment for 73.18 additional support; and 73.19 (3) the potential effectiveness of the grant to maintain 73.20 and support the person in the family environment or the person's 73.21 own home. 73.22 (e) At the time of application to the program or screening 73.23 for other services, the person or the person's family shall be 73.24 provided sufficient information to ensure an informed choice of 73.25 alternatives by the person, the person's legal representative, 73.26 if any, or the person's family. The application shall be made 73.27 to the local agency and shall specify the needs of the person 73.28 and family, the form and amount of grant requested, the items 73.29 and services to be reimbursed, and evidence of eligibility for 73.30 medical assistance or alternative care program. 73.31 (f) Upon approval of an application by the local agency and 73.32 agreement on a support plan for the person or person's family, 73.33 the local agency shall make grants to the person or the person's 73.34 family. The grant shall be in an amount for the direct costs of 73.35 the services or supports outlined in the service agreement. 73.36 (g) Reimbursable costs shall not include costs for 74.1 resources already available, such as special education classes, 74.2 day training and habilitation, case management, other services 74.3 to which the person is entitled, medical costs covered by 74.4 insurance or other health programs, or other resources usually 74.5 available at no cost to the person or the person's family. 74.6 Subd. 5. [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 74.7 For the purpose of transferring persons to the consumer support 74.8 grant program from specific programs or services, such as the 74.9 developmental disability family support program and alternative 74.10 care program, personal care attendant, home health aide, or 74.11 nursing facility services, the amount of funds transferred by 74.12 the commissioner between the developmental disability family 74.13 support program account, the alternative care account, the 74.14 medical assistance account, or the consumer support grant 74.15 account shall be based on each county's participation in 74.16 transferring persons to the consumer support grant program from 74.17 those programs and services. 74.18 (b) At the beginning of each fiscal year, county 74.19 allocations for consumer support grants shall be based on: 74.20 (1) the number of persons to whom the county board expects 74.21 to provide consumer supports grants; 74.22 (2) their eligibility for current program and services; 74.23 (3) the amount of nonfederal dollars expended on those 74.24 individuals for those programs and services; and 74.25 (4) projected dates when persons will start receiving 74.26 grants. County allocations shall be adjusted periodically by 74.27 the commissioner based on the actual transfer of persons or 74.28 service openings, and the nonfederal dollars associated with 74.29 those persons or service openings, to the consumer support grant 74.30 program. 74.31 (c) The commissioner shall use up to five percent of each 74.32 county's allocation, as adjusted, for payments to that county 74.33 for administrative expenses, to be paid as a proportionate 74.34 addition to reported direct service expenditures. 74.35 (d) The commissioner may recover, suspend, or withhold 74.36 payments if the county board, local agency, or grantee does not 75.1 comply with the requirements of this section. 75.2 Subd. 6. [RIGHT TO APPEAL.] Notice, appeal, and hearing 75.3 procedures shall be conducted in accordance with section 75.4 256.045. The denial, suspension, or termination of services 75.5 under this program may be appealed by a recipient or applicant 75.6 under section 256.045, subdivision 3. It is an absolute defense 75.7 to an appeal under this section, if the county board proves that 75.8 it followed the established written procedures and criteria and 75.9 determined that the grant could not be provided within the 75.10 county board's allocation of money for consumer support grants. 75.11 Subd. 7. [FEDERAL FUNDS.] The commissioner and the 75.12 counties shall make reasonable efforts to maximize the use of 75.13 federal funds including funds available through grants and 75.14 federal waivers. If federal funds are made available to the 75.15 consumer support grant program, the money shall be allocated to 75.16 the responsible county agency's consumer support grant fund. 75.17 Subd. 8. [COMMISSIONER RESPONSIBILITIES.] The commissioner 75.18 shall: 75.19 (1) transfer and allocate funds pursuant to this section; 75.20 (2) determine allocations based on projected and actual 75.21 local agency use; 75.22 (3) monitor and oversee overall program spending; 75.23 (4) evaluate the effectiveness of the program; 75.24 (5) provide training and technical assistance for local 75.25 agencies and consumers to help identify potential applicants to 75.26 the program; and 75.27 (6) develop guidelines for local agency program 75.28 administration and consumer information. 75.29 Subd. 9. [COUNTY BOARD RESPONSIBILITIES.] County boards 75.30 receiving funds under this section shall: 75.31 (1) determine the needs of persons and families for 75.32 services and supports; 75.33 (2) determine the eligibility for persons proposed for 75.34 program participation; 75.35 (3) approve items and services to be reimbursed and inform 75.36 families of their determination; 76.1 (4) issue support grants directly to or on behalf of 76.2 persons; 76.3 (5) submit quarterly financial reports and an annual 76.4 program report to the commissioner; 76.5 (6) coordinate services and supports with other programs 76.6 offered or made available to persons or their families; and 76.7 (7) provide assistance to persons or their families in 76.8 securing or maintaining supports, as needed. 76.9 Subd. 10. [CONSUMER RESPONSIBILITIES.] Persons receiving 76.10 grants under this section shall: 76.11 (1) spend the grant money in a manner consistent with their 76.12 agreement with the local agency; 76.13 (2) notify the local agency of any necessary changes in the 76.14 grant or the items on which it is spent; 76.15 (3) notify the local agency of any decision made by the 76.16 person, the person's legal representative, or the person's 76.17 family that would change their eligibility for consumer support 76.18 grants; 76.19 (4) arrange and pay for supports; and 76.20 (5) inform the local agency of areas where they have 76.21 experienced difficulty securing or maintaining supports. 76.22 Sec. 17. [256.973] [HOUSING FOR PERSONS WHO ARE ELDERLY, 76.23 PERSONS WITH PHYSICAL OR DEVELOPMENTAL DISABILITIES, AND 76.24 SINGLE-PARENT FAMILIES.] 76.25 Subdivision 1. [HOME SHARING.] The home-sharing grant 76.26 program authorized by section 462A.05, subdivision 24, is 76.27 transferred from the Minnesota housing finance agency to the 76.28 department of human services. The housing finance agency shall 76.29 administer the current grants that terminate on August 30, 76.30 1995. The department of human services shall administer grants 76.31 funded after August 30, 1995. The department of human services 76.32 may engage in housing programs, as defined by the agency, to 76.33 provide grants to housing sponsors who will provide a 76.34 home-sharing program for low- and moderate-income elderly, 76.35 persons with physical or developmental disabilities, or 76.36 single-parent families in urban and rural areas. 77.1 Subd. 2. [MATCHING OWNERS AND TENANTS.] Housing sponsors 77.2 of home sharing programs, as defined by the agency, shall match 77.3 existing homeowners with prospective tenants who will contribute 77.4 either rent or services to the homeowner, where either the 77.5 homeowner or the prospective tenant is elderly, a person with 77.6 physical or developmental disabilities, or the head of a 77.7 single-parent family. Home-sharing projects will coordinate 77.8 efforts with appropriate public and private agencies and 77.9 organizations in their area. 77.10 Subd. 3. [INFORMATION FOR PARTICIPANTS.] Housing sponsors 77.11 who receive funding through these programs shall provide 77.12 homeowners and tenants participating in a home-sharing program 77.13 with information regarding their rights and obligations as they 77.14 relate to federal and state tax law including, but not limited 77.15 to, taxable rental income, homestead credit under chapter 273, 77.16 and the property tax refund act under chapter 290A. 77.17 Subd. 4. [TECHNICAL ASSISTANCE.] The department of human 77.18 services may provide technical assistance to sponsors of 77.19 home-sharing programs or may contract or delegate the provision 77.20 of technical assistance. 77.21 Subd. 5. [USING OUTSIDE AGENCIES.] The department of human 77.22 services may delegate, use, or employ any federal, state, 77.23 regional, or local public or private agency or organization, 77.24 including organizations of physically handicapped persons, upon 77.25 terms it deems necessary or desirable, to assist in the exercise 77.26 of any of the powers granted in this section. 77.27 Sec. 18. Minnesota Statutes 1994, section 256B.0628, is 77.28 amended by adding a subdivision to read: 77.29 Subd. 3. [ASSESSMENT AND PRIOR AUTHORIZATION PROCESS FOR 77.30 RECIPIENTS OF BOTH HOME CARE AND HOME AND COMMUNITY-BASED 77.31 WAIVERED SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 77.32 CONDITIONS.] Effective January 1, 1996, for purposes of 77.33 providing informed choice, coordinating of local planning 77.34 decisions, and streamlining administrative requirements, the 77.35 assessment and prior authorization process for persons receiving 77.36 both home care and home and community-based waivered services 78.1 for persons with mental retardation or related conditions shall 78.2 meet the requirements of this section and section 256B.0627 with 78.3 the following exceptions: 78.4 (a) Upon request for home care services and subsequent 78.5 assessment by the public health nurse under section 256B.0627, 78.6 the public health nurse shall participate in the screening 78.7 process, as appropriate, and, if home care services are 78.8 determined to be necessary, participate in the development of a 78.9 service plan coordinating the need for home care and home and 78.10 community-based waivered services with the assigned county case 78.11 manager, the recipient of services, and the recipient's legal 78.12 representative, if any. 78.13 (b) The public health nurse shall give prior authorization 78.14 for home care services to the extent that home care services are: 78.15 (1) medically necessary; 78.16 (2) chosen by the recipient and their legal representative, 78.17 if any, from the array of home care and home and community-based 78.18 waivered services available; 78.19 (3) coordinated with other services to be received by the 78.20 recipient as described in the service plan; and 78.21 (4) provided within the county's reimbursement limits for 78.22 home care and home and community-based waivered services for 78.23 persons with mental retardation or related conditions. 78.24 (c) If the public health agency is or may be the provider 78.25 of home care services to the recipient, the public health agency 78.26 shall provide the commissioner of human services with a written 78.27 plan that specifies how the assessment and prior authorization 78.28 process will be held separate and distinct from the provision of 78.29 services. 78.30 Sec. 19. Minnesota Statutes 1994, section 256B.092, is 78.31 amended by adding a subdivision to read: 78.32 Subd. 4c. [LIVING ARRANGEMENTS BASED ON A 24-HOUR PLAN OF 78.33 CARE.] (a) Notwithstanding the requirements for licensure under 78.34 Minnesota Rules, part 9525.1860, subpart 6, item D, and upon 78.35 federal approval of an amendment to the home and community-based 78.36 services waiver for persons with mental retardation or related 79.1 conditions, a person receiving home and community-based services 79.2 may choose to live in their own home without requiring that the 79.3 living arrangement be licensed under Minnesota Rules, parts 79.4 9555.5050 to 9555.6265, provided the following conditions are 79.5 met: 79.6 (1) the person receiving home and community-based services 79.7 has chosen to live in their own home; 79.8 (2) home and community-based services are provided by a 79.9 qualified vendor who meets the provider standards as approved in 79.10 the Minnesota home and community-based services waiver plan for 79.11 persons with mental retardation or related conditions; 79.12 (3) the person, or their legal representative, individually 79.13 or with others has purchased or rents the home and the person's 79.14 service provider has no financial interest in the home; and 79.15 (4) the service planning team, as defined in Minnesota 79.16 Rules, part 9525.0004, subpart 24, has determined that the 79.17 planned services, the 24-hour plan of care, and the housing 79.18 arrangement are appropriate to address the health, safety, and 79.19 welfare of the person. 79.20 (b) The county agency may require safety inspections of the 79.21 selected housing as part of their determination of the adequacy 79.22 of the living arrangement. 79.23 Sec. 20. [TRANSFER OF FUNDS.] 79.24 During the biennium ending June 30, 1997, state funds, 79.25 which had been used during the 1994-1995 biennium to supplement 79.26 payments to state operated home and community-based waiver 79.27 services, shall be transferred to the medical assistance account 79.28 in order to implement the requirements of section 3. Sufficient 79.29 money shall be retained in the applicable accounts to fund 79.30 cost-of-living adjustments in the state-operated community 79.31 waivered services programs. 79.32 Sec. 21. [CRISIS INTERVENTION PROJECTS.] 79.33 (a) The commissioner of human services may authorize up to 79.34 five projects to provide crisis intervention through 79.35 community-based services in the private or public sector to 79.36 persons with developmental disabilities. The projects must be 80.1 geographically distributed in rural and urban areas. The 80.2 parameters of these projects may be consistent with the special 80.3 needs crisis services outlined under Minnesota Statutes, section 80.4 256B.501, subdivision 8a. 80.5 (b) The commissioner shall request proposals from 80.6 individual counties or groups of counties and establish criteria 80.7 for approval of proposals. Criteria shall include: 80.8 (1) avoidance of duplication of service by agreements with 80.9 hospitals and other public or private vendors as appropriate; 80.10 (2) reduction of inpatient psychiatric hospital expenses 80.11 using a cost-effective alternative service; 80.12 (3) maintenance of clients in their current homes; 80.13 (4) promotion of service to clients under a capitation 80.14 agreement with providers; 80.15 (5) coordination with other target populations and other 80.16 counties; 80.17 (6) provision of a full complement of on-site and off-site 80.18 behavioral support and crisis response services including: 80.19 training and technical assistance to prevent out of home 80.20 placements; crisis response, including in-home and short-term 80.21 placements; and assessment of service outcomes; 80.22 (7) evaluation of service program efficacy and cost 80.23 effectiveness. 80.24 (c) The commissioner shall review proposals in accordance 80.25 with Minnesota Statutes, section 252.28, and shall report to the 80.26 legislature on the cost effectiveness of the projects by January 80.27 15, 1997. 80.28 Sec. 22. [AUTHORIZATION FOR DOWNSIZING.] 80.29 Subdivision 1. [DUTIES OF THE COMMISSIONER.] (a) The 80.30 commissioner of human services in consultation with Brown county 80.31 and advocates of persons with mental retardation, shall carry 80.32 out a voluntary downsizing of MBW on Center, an intermediate 80.33 care facility for persons with mental retardation, to assure 80.34 that appropriate services are provided in the least restrictive 80.35 setting as provided under Minnesota Statutes, section 252.291, 80.36 subdivision 3. 81.1 (b) The commissioner shall present a proposal to address 81.2 issues relating to: 81.3 (1) redistribution of costs; 81.4 (2) specific plans for the development and provision of 81.5 alternative services for residents moved from the intermediate 81.6 care facility for persons with mental retardation or related 81.7 conditions; 81.8 (3) timelines and expected beginning dates for resident 81.9 relocation and facility downsizing; and 81.10 (4) projected expenditures for services provided to persons 81.11 with mental retardation or related conditions. 81.12 (c) The commissioner shall ensure that residents discharged 81.13 from the facility are appropriately placed according to need in 81.14 compliance with Minnesota Rules, parts 9525.0025 to 9525.0165. 81.15 (d) The commissioner shall ensure that the proposal 81.16 complies with need determination procedures in Minnesota 81.17 Statutes, sections 252.28 and 252.291; case management 81.18 responsibilities in Minnesota Statutes, section 256B.092; rate 81.19 requirements in Minnesota Statutes, section 256B.501; the 81.20 requirements under United States Code, title 42, section 1396, 81.21 and the rules and regulations adopted under these laws. 81.22 (e) The resulting downsizing must result in living units of 81.23 no larger than four persons, having single bedrooms and a common 81.24 living room, dining room/kitchen, and bathroom. 81.25 (f) The commissioner shall contract with Brown county where 81.26 the facility is located and the facility. The contract will 81.27 address and be consistent with the requirements of the proposal. 81.28 (g) Operating costs of the facility after downsizing may 81.29 not exceed the total allowable operating costs of the original 81.30 facility. For purposes of rate setting for the facility after 81.31 downsizing, fixed costs may be redistributed but must be based 81.32 on the actual costs reflected in existing rates. 81.33 Subd. 2. [IMPLEMENTATION OF THE PROPOSAL.] For the 81.34 purposes of the proposal, the commissioner shall: 81.35 (1) fund the downsizing of the ICF/MR; and 81.36 (2) notify Brown county and the facility of the selections 82.1 made and approved by the commissioner. The decision of the 82.2 commissioner is final and may not be appealed. 82.3 Sec. 23. [FACILITY CERTIFICATION.] 82.4 Notwithstanding Minnesota Statutes, section 252.291, 82.5 subdivision 1, the commissioner of health shall inspect to 82.6 certify a large community-based facility currently licensed 82.7 under Minnesota Rules, parts 9525.0215 to 9525.0355, for more 82.8 than 16 beds and located in Northfield. The facility may be 82.9 certified for up to 44 beds. The commissioner of health must 82.10 inspect to certify the facility as soon as possible after the 82.11 effective date of this section. The commissioner of human 82.12 services shall work with the facility and affected counties to 82.13 relocate any current residents of the facility who do not meet 82.14 the admission criteria for an ICF/MR. To fund the ICF/MR 82.15 services and relocations of current residents authorized, the 82.16 commissioner of human services may transfer on a quarterly basis 82.17 to the medical assistance account from each affected county's 82.18 community social service allocation, an amount equal to the 82.19 state share of medical assistance reimbursement for the 82.20 residential and day habilitation services funded by medical 82.21 assistance and provided to clients for whom the county is 82.22 financially responsible. For nonresidents of Minnesota seeking 82.23 admission to the facility, Rice county shall be notified in 82.24 order to assure that appropriate funding is guaranteed from 82.25 their state or country of residence. 82.26 Sec. 24. [REPEALER.] 82.27 Minnesota Statutes 1994, section 252.275, subdivisions 4a 82.28 and 10, are repealed. 82.29 Sec. 25. [EFFECTIVE DATE.] 82.30 Section 12 (252.60) is effective January 1, 1996. Section 82.31 16 (256.476) is effective July 1, 1996. 82.32 ARTICLE 4 82.33 CHILDREN'S PROGRAMS 82.34 Section 1. Minnesota Statutes 1994, section 245A.14, 82.35 subdivision 7, is amended to read: 82.36 Subd. 7. [CULTURAL DYNAMICS TRAINING FOR CHILD CARE 83.1 PROVIDERS.] (a) Theongoingtraining required of licensed child 83.2 carecenterscenter staff andgroupfamily and group family 83.3 child care providers and staff shall include training in the 83.4 cultural dynamics of early childhood development and child care 83.5as an option. 83.6 (b) The cultural dynamics trainingmust include, but not be83.7limited to, the following: awareness of the value and dignity83.8of different cultures and how different cultures complement each83.9other; awareness of the emotional, physical, and mental needs of83.10children and families of different cultures; knowledge of83.11current and traditional roles of women and men in different83.12cultures, communities, and family environments; and awareness of83.13the diversity of child rearing practices and parenting83.14traditions.shall be designed to achieve outcomes for providers 83.15 of child care that include, but are not limited to: 83.16 (1) an understanding of the importance of culture in 83.17 children's identity development; 83.18 (2) understanding the importance of awareness of cultural 83.19 differences and similarities in working with children and their 83.20 families; 83.21 (3) developing skills to help children develop unbiased 83.22 attitudes about cultural differences; and 83.23 (4) developing skills in culturally appropriate 83.24 caregiving. Curriculum for cultural dynamics training shall be 83.25 approved by the commissioner. 83.26 (c) The commissioner shall amend current rules relating to 83.27 theinitialtraining of the licensed child care center staff and 83.28 licensed providersincluded in paragraph (a)of family and group 83.29 family child care and staff to require cultural dynamics 83.30 trainingupon determining that sufficient curriculum is83.31developed statewide. Timelines established in the rule 83.32 amendments for complying with the cultural dynamics training 83.33 requirements shall be based on the commissioner's determination 83.34 that curriculum materials and trainers are available statewide. 83.35 Sec. 2. Minnesota Statutes 1994, section 256.8711, is 83.36 amended to read: 84.1 256.8711 [EMERGENCY ASSISTANCE; INTENSIVE FAMILY 84.2PRESERVATIONSERVICES.] 84.3 Subdivision 1. [SCOPE OF SERVICES.] (a) For a family 84.4 experiencing an emergency as defined in subdivision 2, and for 84.5 whom the county authorizes services under subdivision 3, 84.6 intensive familypreservationservices authorized under this 84.7 section include both intensive family preservation services and 84.8 emergency assistance placement services. 84.9 (b) For purposes of this section, intensive family 84.10 preservation services are: 84.11 (1) crisis family-based services; 84.12 (2) counseling family-based services; and 84.13 (3) mental health family-based services. 84.14 Intensive family preservation services also include 84.15 family-based life management skills when it is provided in 84.16 conjunction with any of the three family-based services or five 84.17 emergency assistance placement services in this subdivision. 84.18 The intensive family preservation services in clauses (1), (2), 84.19 and (3) and life management skills have the meanings given in 84.20 section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 84.21 (e). 84.22 (c) For purposes of this section, emergency assistance 84.23 placement services include: 84.24 (1) emergency shelter services; 84.25 (2) foster care services; 84.26 (3) group home services; 84.27 (4) child residential treatment services; and 84.28 (5) correctional facility services. 84.29 Subd. 2. [DEFINITION OF EMERGENCY.] For the purposes of 84.30 this section, an emergency is a situation in which the dependent 84.31 children are at risk for out-of-home placement due to abuse, 84.32 neglect, or delinquency;orwhen the children are returning home 84.33 from placements but need services to prevent another 84.34 placement;orwhen the parents are unable to provide care; or 84.35 when the dependent children have been removed from the home by a 84.36 peace officer, by order of the juvenile court, or pursuant to a 85.1 voluntary placement agreement, to a publicly funded out-of-home 85.2 placement. 85.3 Subd. 3. [COUNTY AUTHORIZATION.] The county agency shall 85.4 assess current and prospective client families with a dependent 85.5 under 21 years of age to determine if there is an emergency, as 85.6 defined in subdivision 2, and to determine if there is a need 85.7 for intensive familypreservationservices. Upon such 85.8 determinations,during the period October 1, 1993 to September85.930, 1995,counties shall authorize intensive familypreservation85.10 services for up to90 days12 months for eligible families under 85.11 this section and under section 256.871, subdivisions 1 and 85.12 3.Effective October 1, 1995,Once authorized, intensive family 85.13 services shall be used singly or in any combination or duration 85.14 up to 12 months appropriate to the needs of the child, as 85.15 determined by the county agency. 85.16 Subd. 3a. [LIMITATIONS ON FEDERAL FUNDING.] County 85.17 agencies shall determine eligibility under Title IV-E of the 85.18 Social Security Act for every child being considered for 85.19 emergency assistance placement services. The commissioner and 85.20 county agencies shall make every effort to use federal funding 85.21 under Title IV-E of the Social Security Act instead of federal 85.22 funding under this section, whenever possible. The counties' 85.23 obligations to continue the base level of expenditures and to 85.24 expand family preservation services as defined in section 85.25 256F.03, subdivision 5, are eliminated,with the termination of85.26 if the federal revenue earned under this section is terminated. 85.27 If the federal revenue earned under this section is terminated 85.28 or inadequate, the state has no obligation to pay for these 85.29 services. In the event that federal limitations or ceilings are 85.30 imposed on federal emergency assistance funding, the 85.31 commissioner shall use the funds according to these priorities: 85.32 (1) emergency assistance benefits under section 256.871; 85.33 (2) emergency assistance benefits under the reserve 85.34 established in subdivision 5; 85.35 (3) intensive family preservation services under this 85.36 section; and 86.1 (4) emergency assistance placement services under this 86.2 section. 86.3 Subd. 4. [COST TO FAMILIES.] Family preservation services 86.4 provided under this section or sections 256F.01 to 256F.07 shall 86.5 be provided at no cost to the client and without regard to the 86.6 client's available income or assets. Emergency assistance 86.7 placement services provided under this section shall not be 86.8 dependent on the client's available income or assets. However, 86.9 county agencies shall seek costs of care as required under 86.10 section 260.251 for emergency assistance placement services. 86.11 Subd. 5. [EMERGENCY ASSISTANCE RESERVE.] The commissioner 86.12 shall establish an emergency assistance reserve for families who 86.13 receive intensive familypreservationservices under this 86.14 section. A family is eligible to receive assistance once from 86.15 the emergency assistance reserve if it received intensive family 86.16preservationservices under this section within the past 12 86.17 months, but has not received emergency assistance under section 86.18 256.871 during that period. The emergency assistance reserve 86.19 shall cover the cost of the federal share of the assistance that 86.20 would have been available under section 256.871, except for the 86.21 provision of intensive familypreservationservices provided 86.22 under this section. The emergency assistance reserve shall be 86.23 authorized and paid in the same manner as emergency assistance 86.24 is provided under section 256.871. Funds set aside for the 86.25 emergency assistance reserve that are not needed as determined 86.26 by the commissioner shall be distributed by the terms of 86.27 subdivision 6, paragraph (a); or 6b, paragraph (a), depending on 86.28 how the funds were earned. 86.29 Subd. 6. [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 86.30 INTENSIVE FAMILY PRESERVATION SERVICES.] (a) All federal funds 86.31 not set aside under paragraph (b), and at least 50 percent of 86.32 all federal funds earned for intensive family preservation 86.33 services under this section and earned through assessment 86.34 activity under subdivision 3, shall be paid to each county based 86.35 on its earnings and assessment activity, respectively, and shall 86.36 be used by each county to expand family preservation core 87.1 services as defined in section 256F.03, subdivision510, and 87.2 may be used to expand crisis nursery services. If a county 87.3 joins a local children's mental health collaborative as 87.4 authorized by the 1993 legislature, then the federal 87.5 reimbursement received under this paragraph by the county for 87.6 providing intensive family preservation services to children 87.7 served by the local collaborative shall be transferred by the 87.8 county to the integrated fund. The federal reimbursement 87.9 transferred to the integrated fund by the county must be used 87.10 for intensive family preservation services as defined in section 87.11 256F.03, subdivision 5, to the target population. 87.12 (b) The commissioner shall set aside a portion, not to 87.13 exceed 50 percent, of the federal funds earned for intensive 87.14 family preservation services under this section and earned 87.15 through assessment activity described under subdivision 3. The 87.16 set aside funds shall be used to develop and expand intensive 87.17 family preservation services statewide as provided in 87.18 subdivisions 6a and 7 and establish an emergency assistance 87.19 reserve as provided in subdivision 5. 87.20 Subd. 6a. [DEVELOPMENT GRANTS.] Except for the portion 87.21 needed for the emergency assistance reserve provided in 87.22 subdivision 5, the commissionermayshall distribute the funds 87.23 set aside under subdivision 6, paragraph (b), 87.24 through development grants toa county orcounties to establish 87.25 and maintainapproved intensivefamily preservation core 87.26 services as defined in section 256F.03, subdivision 10, 87.27 statewide.Funds available for crisis family-based services87.28through section 256F.05, subdivision 8, shall be considered in87.29establishing intensive family preservation services statewide.87.30The commissioner may phase in intensive family preservation87.31services in a county or group of counties as new federal funds87.32become available.The commissioner's priority is to establish a 87.33 minimum level ofintensivefamily preservation core services 87.34 statewide. Each county's development grant shall be paid and 87.35 used as provided in sections 256F.01 to 256F.06. 87.36 Subd. 6b. [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 88.1 EMERGENCY ASSISTANCE PLACEMENT SERVICES.] (a) All federal funds 88.2 earned for emergency assistance placement services not set aside 88.3 under paragraph (b), shall be paid to each county based on its 88.4 earnings. These payments shall constitute the placement 88.5 earnings grant of the family preservation fund under sections 88.6 256F.01 to 256F.06. 88.7 (b) The commissioner may set aside a portion, not to exceed 88.8 15 percent, of the federal funds earned for emergency assistance 88.9 placement services under this section. The set aside funds 88.10 shall be used for the emergency assistance reserve as provided 88.11 in subdivision 5. 88.12 Subd. 7. [EXPANSION OF SERVICES AND BASE LEVEL OF 88.13 EXPENDITURES.] (a) Counties must continue the base level of 88.14 expenditures for family preservation core services as defined in 88.15 section 256F.03, subdivision510, from any state, county, or 88.16 federal funding source, which, in the absence of federal funds 88.17 earned for intensive family preservation services under this 88.18 section and earned through assessment activity described under 88.19 subdivision 3, would have been available for these services. 88.20 The commissioner shall review the county expenditures annually, 88.21 using reports required under sections 245.482, 256.01, 88.22 subdivision 2, paragraph (17), and 256E.08, subdivision 8, to 88.23 ensure that the base level of expenditures for family 88.24 preservation core services as defined in section 256F.03, 88.25 subdivision510, is continued from sources other than the 88.26 federal funds earned under this section and earned through 88.27 assessment activity described under subdivision 3. 88.28 (b) The commissionermayshall, at the request of a county, 88.29 reduce, suspend, or eliminate either or both of a county's 88.30 obligations to continue the base level of expenditures and to 88.31 expand family preservation core services as defined in section 88.32 256F.03, subdivision510, if the commissioner determines that 88.33 one or more of the following conditions apply to that county: 88.34 (1) imposition of levy limits or other levy restrictions 88.35 that significantly reduce available social service funds; 88.36 (2) reduction in the net tax capacity of the taxable 89.1 property within a county that significantly reduces available 89.2 social service funds; 89.3 (3) reduction in the number of children under age 19 in the 89.4 county by 25 percent when compared with the number in the base 89.5 year using the most recent data provided by the state 89.6 demographer's office;or89.7 (4) termination or reduction of the federal revenue earned 89.8 under this section; or 89.9 (5) other changes in state law that significantly impact 89.10 the receipt or distribution of state and federal funding. 89.11 (c) The commissioner may suspend for one year either or 89.12 both of a county's obligations to continue the base level of 89.13 expenditures and to expand family preservation core services as 89.14 defined in section 256F.03, subdivision510, if the 89.15 commissioner determines that in the previous year one or more of 89.16 the following conditions applied to that county: 89.17 (1) the unduplicated number of families who received family 89.18 preservation services under section 256F.03, subdivision 5, 89.19 paragraphs (a), (b), (c), and (e), equals or exceeds the 89.20 unduplicated number of children who entered placement under 89.21 sections 257.071 and 393.07, subdivisions 1 and 2, during the 89.22 year; 89.23 (2) the total number of children in placement under 89.24 sections 257.071 and 393.07, subdivisions 1 and 2, has been 89.25 reduced by 50 percent from the total number in the base year; or 89.26 (3) the average number of children in placement under 89.27 sections 257.071 and 393.07, subdivisions 1 and 2, on the last 89.28 day of each month is equal to or less than one child per 1,000 89.29 children in the county. 89.30 (d) For the purposes of this section, the base year is 89.31 calendar year 1992. For the purposes of this section, the base 89.32 level of expenditures is the level of county expenditures in the 89.33 base year for eligible family preservation services under 89.34 section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 89.35 (e). 89.36 Subd. 8. [COUNTY RESPONSIBILITIES.] (a) Notwithstanding 90.1 section 256.871, subdivision 6, for intensive 90.2 familypreservationservices provided under this section, the 90.3 county agency shall submit quarterly fiscal reports as required 90.4 under section 256.01, subdivision 2, clause (17), and provide 90.5 the nonfederal share. 90.6 (b) County expenditures eligible for federal reimbursement 90.7 under this section must not be made from federal funds or funds 90.8 used to match other federal funds. 90.9 (c) The commissioner may suspend, reduce, or terminate the 90.10 federal reimbursement to a county that does not meet the 90.11 reporting or other requirements of this section. 90.12 Subd. 9. [PAYMENTS.] Notwithstanding section 256.025, 90.13 subdivision 2, payments to counties for social service 90.14 expenditures for intensive familypreservationservices under 90.15 this section shall be made only from the federal earnings under 90.16 this section and earned through assessment activity described 90.17 under subdivision 3. Counties may use up to ten percent of 90.18 federal earnings received under subdivision 6, paragraph (a), to 90.19 cover costs of income maintenance activities related to the 90.20 operation of this section and sections 256B.094 and 256F.10. 90.21 Subd. 10. [COMMISSIONER RESPONSIBILITIES.] The 90.22 commissioner in consultation with counties shall analyze state 90.23 funding options to cover costs of counties' base level 90.24 expenditures and any expansion of the nonfederal share of 90.25 intensive family preservation services resulting from 90.26 implementation of this section. The commissioner shall also 90.27 study problems of implementation, barriers to maximizing federal 90.28 revenue, and the impact on out-of-home placements of 90.29 implementation of this section. The commissioner shall report 90.30 to the legislature on the results of this analysis and study, 90.31 together with recommendations, by February 15, 1995. 90.32 Sec. 3. Minnesota Statutes 1994, section 256D.02, 90.33 subdivision 5, is amended to read: 90.34 Subd. 5. "Family" means the applicant or recipient and the 90.35 following persons who reside with the applicant or recipient: 90.36 (1) the applicant's spouse; 91.1 (2) any minor child of whom the applicant is a parent, 91.2 stepparent, or legal custodian, and that child's minor siblings, 91.3 including half-siblings and stepsiblings; 91.4 (3) the other parent of the applicant's minor child or 91.5 children together with that parent's minor children, and, if 91.6 that parent is a minor, his or her parents, stepparents, legal 91.7 guardians, and minor siblings; and 91.8 (4) if the applicant or recipient is a minor, the minor's 91.9 parents, stepparents, or legal guardians, and any other minor 91.10 children for whom those parents, stepparents, or legal guardians 91.11 are financially responsible. 91.12For the period July 1, 1993 to June 30, 1995,A minor child 91.13 who is temporarily absent from the applicant's or recipient's 91.14 home due to placement in foster care paid for from state or 91.15 local funds, but who is expected to return within six months of 91.16 the month of departure, is considered to be residing with the 91.17 applicant or recipient. 91.18 A "family" must contain at least one minor child and at 91.19 least one of that child's natural or adoptive parents, 91.20 stepparents, or legal custodians. 91.21 Sec. 4. Minnesota Statutes 1994, section 256E.115, is 91.22 amended to read: 91.23 256E.115 [SAFE HOUSES AND TRANSITIONAL HOUSING FOR HOMELESS 91.24 YOUTH.] 91.25 Subdivision 1. [COMMISSIONER DUTIES.] The commissioner 91.26 shallhave authority to make grants for pilot programs when the91.27legislature authorizes money to encourage innovation in the91.28development of safe house programs to respond to the needs of91.29homeless youthissue a request for proposals from organizations 91.30 that are knowledgeable about the needs of homeless youth for the 91.31 purpose of providing safe houses and transitional housing for 91.32 homeless youth. The commissioner shall also assist in 91.33 coordinating funding from federal and state grant programs and 91.34 funding available from a variety of sources for efforts to 91.35 promote a continuum of services for youth through a consolidated 91.36 grant application. The commissioner shall analyze the needs of 92.1 homeless youth and gaps in services throughout the state and 92.2 determine how to best serve those needs within the available 92.3 funding. 92.4 Subd. 2. [SAFE HOUSES AND TRANSITIONAL HOUSING.] A safe 92.5 house provides emergency housing for homeless youth ages 13 to 92.6 21. Transitional housing provides housing for homeless youth 92.7 ages 16 to 21 who are transitioning into independent living. 92.8 In developing both types of housing, the commissioner shall 92.9 try to create a family atmosphere in a neighborhood or community 92.10 and, if possible, provide separate but cooperative homes for 92.11 males and females. The following services, or adequate access 92.12 to referrals for the following services, must be made available 92.13 to the homeless youth: 92.14 (1) counseling services for the youth and their families, 92.15 on site, to help with problems that resulted in the 92.16 homelessness; 92.17 (2) job services to help youth find employment in addition 92.18 to creating jobs on site, including food service, maintenance, 92.19 child care, and tutoring; 92.20 (3) health services that are confidential and provide 92.21 preventive care services, crisis referrals, and other necessary 92.22 health care services; 92.23 (4) living skills training to help youth learn how to care 92.24 for themselves; and 92.25 (5) education services that help youth enroll in academic 92.26 programs, if they are currently not in a program. Enrollment in 92.27 an academic program is required for residency in transitional 92.28 housing. 92.29 Sec. 5. Minnesota Statutes 1994, section 256F.01, is 92.30 amended to read: 92.31 256F.01 [PUBLIC POLICY.] 92.32 The public policy of this state is to assure that all 92.33 children, regardless of minority racial or ethnic heritage,live 92.34 in families that offer a safe, permanent relationship with 92.35 nurturing parents or caretakers. To help assure children the 92.36 opportunity to establish lifetime relationships, public social 93.1 services must strive to provide culturally competent services 93.2 and be directed toward: 93.3 (1) preventing the unnecessary separation of children from 93.4 their families by identifying family problems, assisting 93.5 families in resolving their problems, and preventing breakup of 93.6 the family if it is desirable and possible; 93.7 (2) restoring to their families children who have been 93.8 removed, by continuing to provide services to the reunited child 93.9 and the families; 93.10 (3) placing children in suitable adoptive homes, in cases 93.11 where restoration to the biological family is not possible or 93.12 appropriate; and 93.13 (4) assuring adequate care of children away from their 93.14 homes, in cases where the child cannot be returned home or 93.15 cannot be placed for adoption. 93.16 Sec. 6. Minnesota Statutes 1994, section 256F.02, is 93.17 amended to read: 93.18 256F.02 [CITATION.] 93.19 Sections 256F.01 to 256F.07 and 256F.10 may be cited as the 93.20 "Minnesota family preservation act." 93.21 Sec. 7. Minnesota Statutes 1994, section 256F.03, 93.22 subdivision 5, is amended to read: 93.23 Subd. 5. [FAMILY-BASED SERVICES.] "Family-based services" 93.24 means one or more of the services described in paragraphs (a) to 93.25 (f) provided to families primarily in their own home for a 93.26 limited time.Family-based services eligible for funding under93.27the family preservation act are the services described in93.28paragraphs (a) to (f).93.29 (a) [CRISIS SERVICES.] "Crisis services" means professional 93.30 services provided within 24 hours of referral to alleviate a 93.31 family crisis and to offer an alternative to placing a child 93.32 outside the family home. The services are intensive and time 93.33 limited. The service may offer transition to other appropriate 93.34 community-based services. 93.35 (b) [COUNSELING SERVICES.] "Counseling services" means 93.36 professional family counseling provided to alleviate individual 94.1 and family dysfunction; provide an alternative to placing a 94.2 child outside the family home; or permit a child to return 94.3 home. The duration, frequency, and intensity of the service is 94.4 determined in the individual or family service plan. 94.5 (c) [LIFE MANAGEMENT SKILLS SERVICES.] "Life management 94.6 skills services" means paraprofessional services that teach 94.7 family members skills in such areas as parenting, budgeting, 94.8 home management, and communication. The goal is to strengthen 94.9 family skills as an alternative to placing a child outside the 94.10 family home or to permit a child to return home. A social 94.11 worker shall coordinate these services within the family case 94.12 plan. 94.13 (d) [CASE COORDINATION SERVICES.] "Case coordination 94.14 services" means professional services provided to an individual, 94.15 family, or caretaker as an alternative to placing a child 94.16 outside the family home, to permit a child to return home, or to 94.17 stabilize the long-term or permanent placement of a child. 94.18 Coordinated services are provided directly, are arranged, or are 94.19 monitored to meet the needs of a child and family. The 94.20 duration, frequency, and intensity of services is determined in 94.21 the individual or family service plan. 94.22 (e) [MENTAL HEALTH SERVICES.] "Mental health services" 94.23 means the professional services defined in section 245.4871, 94.24 subdivision 31. 94.25 (f) [EARLY INTERVENTION SERVICES.] "Early intervention 94.26 services" means family-based intervention services designed to 94.27 help at-risk families avoid crisis situations. 94.28 Sec. 8. Minnesota Statutes 1994, section 256F.03, is 94.29 amended by adding a subdivision to read: 94.30 Subd. 10. [FAMILY PRESERVATION CORE SERVICES.] "Family 94.31 preservation core services" means adequate capacity of crisis 94.32 services as defined in subdivision 5, paragraph (a), plus either 94.33 or both counseling services as defined in subdivision 5, 94.34 paragraph (b), and mental health services as defined in 94.35 subdivision 5, paragraph (e), plus life management skills 94.36 services as defined in subdivision 5, paragraph (c). 95.1 Sec. 9. Minnesota Statutes 1994, section 256F.04, 95.2 subdivision 1, is amended to read: 95.3 Subdivision 1. [GRANT PROGRAMFAMILY PRESERVATION FUND.] 95.4 The commissioner shall establish astatewidefamily preservation 95.5grant programfund to assist counties in providing placement 95.6 prevention and family reunification services. This fund shall 95.7 include a basic grant for family preservation services, a 95.8 placement earnings grant under section 256.8711, subdivision 6b, 95.9 paragraph (a), and a development grant under section 256.8711, 95.10 subdivision 6a, to assist counties in developing and expanding 95.11 their family preservation core services as defined in section 95.12 256F.03, subdivision 10. Beginning with calendar year 1998, 95.13 after each annual or quarterly calculation, these three 95.14 component grants shall be added together and treated as a 95.15 single-family preservation grant. 95.16 Sec. 10. Minnesota Statutes 1994, section 256F.04, 95.17 subdivision 2, is amended to read: 95.18 Subd. 2. [FORMS AND INSTRUCTIONS.] The commissioner shall 95.19 provide necessary forms and instructions to the counties for 95.20 their community social services plan, as required in section 95.21 256E.09, that incorporate thepermanency plan format and95.22 information necessary to apply for a family preservation fund 95.23 grant, and to exercise county options under section 256F.05, 95.24 subdivision 7, paragraph (a), or subdivision 8, paragraph (c). 95.25 Sec. 11. Minnesota Statutes 1994, section 256F.05, is 95.26 amended by adding a subdivision to read: 95.27 Subd. 1a. [DEVELOPMENT OF FAMILY PRESERVATION CORE 95.28 SERVICES.] The commissioner shall annually determine whether a 95.29 county's family preservation core services, as defined in 95.30 section 256F.03, subdivision 10, are developed for that calendar 95.31 year. In making this determination for any given calendar year, 95.32 the commissioner shall consider factors for each county such as 95.33 which family preservation core services are included in its 95.34 community services plan under section 256E.09, the ratio of 95.35 expenditures on family preservation core services to 95.36 expenditures on out-of-home placements, the availability of 96.1 crisis services as defined in section 256F.03, subdivision 5, 96.2 paragraph (a), and recent trends in out-of-home placements both 96.3 within that county and statewide. 96.4 Sec. 12. Minnesota Statutes 1994, section 256F.05, 96.5 subdivision 2, is amended to read: 96.6 Subd. 2. [MONEY AVAILABLE FOR THE BASIC GRANT.] Money 96.7 appropriated for family preservationgrants to countiesunder 96.8 sections 256F.04 to 256F.07, together with an amount as 96.9 determined by the commissioner of title IV-B funds distributed 96.10 to Minnesota according to the Social Security Act, United States 96.11 Code, title 42, section 621, must be distributed to counties on 96.12 a calendar year basis according to the formula in subdivision 3. 96.13 Sec. 13. Minnesota Statutes 1994, section 256F.05, 96.14 subdivision 3, is amended to read: 96.15 Subd. 3. [BASIC GRANT FORMULA.] (a) The amount of money 96.16 allocated to counties under subdivision 2must be based on the96.17following two factorsshall first be allocated in amounts equal 96.18 to each county's guaranteed floor according to paragraph (b), 96.19 and second, any remaining available funds allocated as follows: 96.20 (1) 90 percent of the funds shall be allocated based on the 96.21 population of the county under age 19 years as compared to the 96.22 state as a whole as determined by the most recent data from the 96.23 state demographer's office; and 96.24 (2) ten percent of the funds shall be allocated based on 96.25 the county's percentage share of the number of minority children 96.26in substitute carereceiving children's case management services 96.27 as defined by the commissioner based on the most recent data as 96.28 determined by themost recent department of human services96.29annual report on children in foster carecommissioner. 96.30The amount of money allocated according to formula factor96.31(1) must not be less than 90 percent of the total allocated96.32under subdivision 2.96.33 (b) Each county's basic grant guaranteed floor shall be 96.34 calculated as follows: 96.35 (1) 90 percent of the county's allocation received in the 96.36 preceding calendar year. For calendar year 1996 only, the 97.1 allocation received in the preceding calendar year shall be 97.2 determined by the commissioner based on the funding previously 97.3 distributed as separate grants under sections 256F.04 to 97.4 256F.07; and 97.5 (2) when the amounts of funds available for allocation is 97.6 less than the amount available in the previous year, each 97.7 county's previous year allocation shall be reduced in proportion 97.8 to the reduction in the statewide funding, for the purpose of 97.9 establishing the guaranteed floor. 97.10 (c) The commissioner shall regularly review the use of 97.11 family preservation fund allocations by county. The 97.12 commissioner may reallocate unexpended or unencumbered money at 97.13 any time among those counties that have expended or are 97.14 projected to expend their full allocation. 97.15 Sec. 14. Minnesota Statutes 1994, section 256F.05, 97.16 subdivision 4, is amended to read: 97.17 Subd. 4. [PAYMENTS.] The commissioner shall make grant 97.18 payments to each county whose biennial community social services 97.19 planincludes a permanency planhas been approved under section 97.20 256F.04, subdivision 2. Thepayment must be madebasic grant 97.21 under subdivisions 2 and 3 and the development grant under 97.22 section 256.8711, subdivision 6a, shall be paid to counties in 97.23 four installments per year. The commissioner may certify the 97.24 payments for the first three months of a calendar year. 97.25 Subsequent paymentsmust be made on May 15, August 15, and97.26November 15, of each calendar year. When an amount of title97.27IV-B funds as determined by the commissioner is made available,97.28it shall be reimbursed to counties on November 15.shall be 97.29 based on reported expenditures and may be adjusted for 97.30 anticipated spending patterns. The placement earnings grant 97.31 under section 256.8711, subdivision 6b, paragraph (a), shall be 97.32 based on earnings and coordinated with the other payments. In 97.33 calendar years 1996 and 1997, the placement earnings grant and 97.34 the development grant shall be distributed separately from the 97.35 basic grant, except as provided in subdivision 7, paragraph 97.36 (a). Beginning with calendar year 1998, after each annual or 98.1 quarterly calculation, these three component grants shall be 98.2 added together into a single-family preservation fund grant and 98.3 treated as a single grant. 98.4 Sec. 15. Minnesota Statutes 1994, section 256F.05, 98.5 subdivision 5, is amended to read: 98.6 Subd. 5. [INAPPROPRIATE EXPENDITURES.] Family preservation 98.7 fund basic, placement earnings, and development grant money must 98.8 not be used for: 98.9 (1) child day care necessary solely because of the 98.10 employment or training to prepare for employment, of a parent or 98.11 other relative with whom the child is living; 98.12 (2) residential facility payments; 98.13 (3) adoption assistance payments; 98.14 (4) public assistance payments for aid to families with 98.15 dependent children, supplemental aid, medical assistance, 98.16 general assistance, general assistance medical care, or 98.17 community health services authorized by sections 145A.09 to 98.18 145A.13; or 98.19 (5) administrative costs for local social services agency 98.20 public assistance staff. 98.21 Sec. 16. Minnesota Statutes 1994, section 256F.05, 98.22 subdivision 7, is amended to read: 98.23 Subd. 7. [TRANSFER OF FUNDSUSES OF PLACEMENT EARNINGS AND 98.24 DEVELOPMENT GRANTS.]Notwithstanding subdivision 1, the98.25commissioner may transfer money from the appropriation for98.26family preservation grants to counties into the subsidized98.27adoption account when a deficit in the subsidized adoption98.28program occurs. The amount of the transfer must not exceed five98.29percent of the appropriation for family preservation grants to98.30counties.(a) For calendar years 1996 and 1997, each county must 98.31 use its placement earnings and development grants to develop and 98.32 expand its family preservation core services as defined in 98.33 section 256F.03, subdivision 10. If a county demonstrates that 98.34 its family preservation core services are developed as provided 98.35 in subdivision 1a, then at the county's written request, the 98.36 commissioner shall add its placement earnings and development 99.1 grant to its basic grant, to be used as a single-family 99.2 preservation fund grant. 99.3 (b) Beginning with calendar year 1998, each county which 99.4 has demonstrated that year that its family preservation core 99.5 services are developed as provided in subdivision 1a, shall have 99.6 its placement earnings and development grant added to its basic 99.7 grant, to be used as a single-family preservation fund grant. 99.8 The development grant for any county which has not so 99.9 demonstrated shall be redistributed to all counties which have, 99.10 in proportion to their calculated development grants. 99.11 Sec. 17. Minnesota Statutes 1994, section 256F.05, 99.12 subdivision 8, is amended to read: 99.13 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTSFOR99.14FAMILY-BASED CRISIS SERVICES.]Within the limits of99.15appropriations made for this purpose, the commissioner may award99.16grants for the families first program, including section99.17256F.08, to be distributed on a calendar year basis to counties99.18to provide programs for family-based crisis services defined in99.19section 256F.03, subdivision 5. The commissioner shall ask99.20counties to present proposals for the funding and shall award99.21grants for the funding on a competitive basis. Beginning99.22January 1, 1993, the state share of the costs of the programs99.23shall be 75 percent and the county share, 25 percent.For both 99.24 basic grants and single-family preservation fund grants: 99.25 (a) A county which has not demonstrated that year that its 99.26 family preservation core services are developed as provided in 99.27 subdivision 1a, must use its family preservation fund grant 99.28 exclusively for family preservation services defined in section 99.29 256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 99.30 (b) A county which has demonstrated that year that its 99.31 family preservation core services are developed becomes eligible 99.32 either to continue using its family preservation fund grant as 99.33 provided in paragraph (a), or to exercise the expanded service 99.34 option under paragraph (c). 99.35 (c) The expanded service option permits an eligible county 99.36 to use its family preservation fund grant for child welfare