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Capital IconMinnesota Legislature
Office of the Revisor of Statutes

HF 1991

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

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Pdf Rtf
Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28
1.29 1.30
1.31 1.32 2.1 2.2 2.3 2.4
2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23
2.24 2.25 2.26 2.27 2.28 2.29 2.30
2.31 2.32 2.33 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19
6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 7.1 7.2
7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31
7.32 7.33 7.34 8.1 8.2 8.3 8.4 8.5 8.6 8.7
8.8 8.9
8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 8.35 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12
10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 11.1 11.2 11.3 11.4
11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17
11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25
11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33
12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 12.36 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13
13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24
13.25 13.26 13.27 13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16
14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26
14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 15.1 15.2 15.3 15.4 15.5 15.6
15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 16.35 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12
18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 18.35 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33 19.34 19.35 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14 20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24
20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11
21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34 22.1 22.2 22.3 22.4 22.5
22.6 22.7
22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29 23.30 23.31 23.32 23.33 23.34 23.35 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25 24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35 24.36 25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 25.30 25.31 25.32 25.33 25.34 25.35 25.36 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 26.36 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33 27.34 27.35 27.36 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 28.36 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 29.35 29.36 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13
30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 30.33 30.34 30.35 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15
31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32
31.33 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18
32.19 32.20 32.21 32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 32.35
33.1 33.2 33.3 33.4 33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12
33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30
33.31 33.32 33.33 33.34 34.1 34.2 34.3 34.4 34.5
34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2
35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32
35.33 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30
36.31 36.32 36.33 36.34 36.35 37.1 37.2 37.3 37.4 37.5
37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31
37.32 37.33 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 38.28 38.29 38.30 38.31
38.32 38.33 38.34 38.35 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12
39.13 39.14 39.15 39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28 39.29
39.30 39.31 39.32 39.33 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 40.31 40.32
40.33 40.34 40.35 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 41.35 41.36 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 42.35 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 43.34 43.35 43.36 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12
44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 44.32 44.33 44.34 44.35 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13
45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 45.35 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 46.36 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 47.36 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34
49.35 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34 50.35 50.36 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18
51.19 51.20 51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29 51.30 51.31 51.32 51.33 51.34 51.35 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31 52.32 52.33 52.34 52.35 52.36 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 53.36 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 54.34 54.35 54.36 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 55.35 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 56.36 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9
57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22
57.23 57.24 57.25
57.26 57.27
57.28 57.29 57.30 57.31 57.32 57.33 58.1 58.2 58.3 58.4 58.5 58.6 58.7
58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 58.31 58.32 58.33 58.34 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15
59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 59.35 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12
60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 60.34 60.35 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 61.35 61.36 62.1 62.2 62.3 62.4 62.5
62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 63.1 63.2 63.3 63.4 63.5 63.6 63.7
63.8 63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20
63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33
64.1 64.2 64.3 64.4 64.5 64.6
64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15
64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 65.1 65.2 65.3 65.4 65.5 65.6 65.7
65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16 65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 65.34 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 66.32 66.33 66.34 66.35 66.36 67.1 67.2
67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 67.35 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12
68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 69.1 69.2 69.3
69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28
69.29 69.30 69.31 69.32 69.33 69.34 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13
70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 70.34 70.35 71.1 71.2 71.3 71.4 71.5 71.6
71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22 71.23 71.24 71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 71.34 72.1 72.2 72.3 72.4 72.5 72.6
72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 72.35 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33
73.34 73.35 74.1 74.2 74.3 74.4 74.5
74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17 74.18 74.19 74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30
74.31 74.32 74.33 74.34 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9
75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24
75.25 75.26 75.27 75.28 75.29 75.30 75.31 75.32 75.33 75.34 76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 76.33 76.34 76.35 76.36 77.1 77.2 77.3 77.4 77.5 77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15
77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27
77.28 77.29
77.30 77.31 77.32 77.33 77.34 78.1 78.2 78.3 78.4
78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25
78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 78.34 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 79.32 79.33 79.34 79.35 79.36 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17 80.18 80.19 80.20 80.21 80.22 80.23 80.24 80.25 80.26 80.27 80.28 80.29 80.30 80.31 80.32 80.33 80.34 80.35 80.36 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12 81.13 81.14 81.15 81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33 81.34 81.35 81.36 82.1 82.2 82.3 82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12
82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 83.1 83.2 83.3 83.4 83.5 83.6
83.7 83.8 83.9 83.10 83.11 83.12 83.13 83.14 83.15 83.16 83.17 83.18 83.19 83.20 83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 83.35 84.1 84.2 84.3
84.4 84.5 84.6 84.7 84.8 84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22
84.23 84.24 84.25 84.26 84.27
84.28 84.29
84.30 84.31 84.32 84.33 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17 85.18 85.19 85.20 85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 85.33 85.34 86.1 86.2 86.3
86.4 86.5 86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14 86.15 86.16 86.17 86.18 86.19 86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28 86.29 86.30 86.31 86.32 86.33 86.34 86.35
87.1 87.2 87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18 87.19 87.20
87.21 87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29 87.30 87.31 87.32 87.33 87.34 87.35 88.1 88.2 88.3 88.4 88.5 88.6 88.7 88.8 88.9
88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24 88.25 88.26 88.27 88.28 88.29 88.30 88.31 88.32 88.33 88.34 88.35 89.1 89.2
89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14 89.15 89.16 89.17 89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 89.33 89.34 89.35 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13 90.14 90.15 90.16 90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24 90.25 90.26 90.27 90.28 90.29 90.30 90.31 90.32 90.33 90.34 90.35 91.1 91.2 91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20
91.21 91.22 91.23 91.24 91.25 91.26 91.27 91.28 91.29 91.30
91.31 91.32 91.33 91.34 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12
92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22 92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 92.31
92.32 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13 93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25
93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 93.34 93.35 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10 94.11 94.12 94.13 94.14 94.15 94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26
94.27 94.28 94.29 94.30 94.31 94.32 94.33 94.34 94.35 95.1 95.2 95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18
95.19 95.20 95.21 95.22
95.23
95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32 95.33 95.34
95.35 96.1 96.2 96.3 96.4
96.5 96.6 96.7 96.8 96.9 96.10 96.11

A bill for an act
 relating to human services; making technical changes; amending child care;
chemical and mental health; child welfare and public assistance; continuing care;
health care; amending Minnesota Statutes 2006, sections 119B.011, subdivision
17; 119B.09, subdivision 1; 119B.125, subdivision 2, by adding a subdivision;
119B.13, subdivisions 3a, 7; 144.225, subdivision 2b; 245.4874; 252.32,
subdivision 3; 253B.185, subdivision 2; 254A.03, subdivision 3; 254A.16,
subdivision 2; 254B.02, subdivisions 1, 5; 254B.03, subdivisions 1, 3; 254B.06,
subdivision 3; 256.01, subdivision 2; 256.045, subdivision 3b; 256.0451,
subdivisions 1, 3, 11, 19; 256.046, subdivision 1; 256.476, subdivisions 1, 2, 3,
4, 5, 10; 256.974; 256.9744, subdivision 1; 256B.0625, subdivisions 1a, 13c, 23;
256B.0911, subdivision 4c; 256B.0913, subdivisions 4, 5, 5a, 8, 9, 10, 11, 12, 13,
14; 256B.0919, subdivision 3; 256B.0943, subdivisions 6, 9, 11, 12; 256B.431,
subdivisions 1, 3f, 17e; 256D.03, subdivision 4; 256E.35, subdivisions 2, 7;
256J.21, subdivision 3; 256J.30, subdivision 9; 256J.32, subdivision 4; 256J.42,
subdivisions 5, 6; 256J.425, subdivision 6; 256J.45, subdivision 2; 256J.46,
subdivision 1; 256J.49, subdivision 13; 256J.50, subdivisions 1, 11; 256J.54,
subdivisions 2, 5; 256J.55, subdivision 1; 256J.561, subdivision 2; 256J.645;
256J.66, subdivision 1; 256J.67, subdivision 3; 256J.95, subdivision 11; 256L.03,
subdivision 5; 256L.04, subdivisions 1, 12; 259.67, subdivision 4; 260.012;
260B.157, subdivision 1; 626.556, subdivisions 2, 3, 10, 10c; Laws 2005, chapter
98, article 3, section 25; repealing Minnesota Statutes 2006, sections 252.21;
252.22; 252.23; 252.24; 252.25; 252.261; 252.275, subdivision 5; 254A.02,
subdivisions 7, 9, 12, 14, 15, 16; 254A.085; 254A.086; 254A.12; 254A.14;
254A.15; 254A.16, subdivision 5; 254A.175; 254A.18; 256B.0913, subdivisions
5b, 5c, 5d, 5e, 5f, 5g, 5h; 256J.561, subdivision 1; 256J.62, subdivision 9;
256J.65; Minnesota Rules, part 9503.0035, subpart 2.

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

ARTICLE 1

CHILD CARE

Section 1.

Minnesota Statutes 2006, section 119B.011, subdivision 17, is amended to
read:


Subd. 17.

MFIP.

"MFIP" means the Minnesota family investment program, the
state's TANF program under Public Law 104-193, Title I, and includes the MFIP program
under chapter 256J, deleted text begin the work first program under chapter 256K,deleted text end and tribal contracts under
section 119B.02, subdivision 2, or 256.01, subdivision 2.

Sec. 2.

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


Subdivision 1.

General eligibility requirements for all applicants for child
care assistance.

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

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

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

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

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

Sec. 3.

Minnesota Statutes 2006, section 119B.125, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Background study required. new text end

new text begin This subdivision is limited to legal,
nonlicensed family child care providers. Prior to authorization, and as part of each
reauthorization required in subdivision 1, the county must perform a background study on
every member of the provider's household who is age 13 and older. The background study
must be conducted according to subdivision 2.
 new text end

Sec. 4.

Minnesota Statutes 2006, section 119B.125, subdivision 2, is amended to read:


Subd. 2.

Persons who cannot be authorized.

(a) deleted text begin A person whodeleted text end new text begin When any
member of the legal, nonlicensed family child care provider's householdnew text end meets any of the
conditions under paragraphs (b) to (n)new text begin , the providernew text end must not be authorized as a legal
nonlicensed family child care provider. To determine whether any of the listed conditions
exist, the county must request information about the provider new text begin and other household
members for whom a background study is required under subdivision 1a new text end from the Bureau
of Criminal Apprehension, the juvenile courts, and social service agencies. When one
of the listed entities does not maintain information on a statewide basis, the county must
contact the entity in the county where the provider resides and any other county in which
the providernew text begin or any household membernew text end previously resided in the past year. For purposes of
this subdivision, a finding that a delinquency petition is proven in juvenile court must be
considered a conviction in state district court. If a county has determined that a provider
is able to be authorized in that county, and a family in another county later selects that
provider, the provider is able to be authorized in the second county without undergoing a
new background investigation unless one of the following conditions exists:

(1) two years have passed since the first authorization;

(2) another person age 13 or older has joined the provider's household since the
last authorization;

(3) a current household member has turned 13 since the last authorization; or

(4) there is reason to believe that a household member has a factor that prevents
authorization.

(b) The person has been convicted of one of the following offenses or has admitted to
committing or a preponderance of the evidence indicates that the person has committed an
act that meets the definition of one of the following offenses: sections 609.185 to 609.195,
murder in the first, second, or third degree; 609.2661 to 609.2663, murder of an unborn
child in the first, second, or third degree; 609.322, solicitation, inducement, promotion
of prostitution, or receiving profit from prostitution; 609.342 to 609.345, criminal sexual
conduct in the first, second, third, or fourth degree; 609.352, solicitation of children to
engage in sexual conduct; 609.365, incest; 609.377, felony malicious punishment of a
child; 617.246, use of minors in sexual performance; 617.247, possession of pictorial
representation of a minor; 609.2242 to 609.2243, felony domestic assault; a felony offense
of spousal abuse; a felony offense of child abuse or neglect; a felony offense of a crime
against children; or an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(c) Less than 15 years have passed since the discharge of the sentence imposed for
the offense and the person has received a felony conviction for one of the following
offenses, or the person has admitted to committing or a preponderance of the evidence
indicates that the person has committed an act that meets the definition of a felony
conviction for one of the following offenses: sections 609.20 to 609.205, manslaughter in
the first or second degree; 609.21, criminal vehicular homicide; 609.215, aiding suicide
or aiding attempted suicide; 609.221 to 609.2231, assault in the first, second, third, or
fourth degree; 609.224, repeat offenses of fifth degree assault; 609.228, great bodily
harm caused by distribution of drugs; 609.2325, criminal abuse of a vulnerable adult;
609.2335, financial exploitation of a vulnerable adult; 609.235, use of drugs to injure or
facilitate a crime; 609.24, simple robbery; 617.241, repeat offenses of obscene materials
and performances; 609.245, aggravated robbery; 609.25, kidnapping; 609.255, false
imprisonment; 609.2664 to 609.2665, manslaughter of an unborn child in the first or
second degree; 609.267 to 609.2672, assault of an unborn child in the first, second, or third
degree; 609.268, injury or death of an unborn child in the commission of a crime; 609.27,
coercion; 609.275, attempt to coerce; 609.324, subdivision 1, other prohibited acts, minor
engaged in prostitution; 609.3451, repeat offenses of criminal sexual conduct in the fifth
degree; 609.378, neglect or endangerment of a child; 609.52, theft; 609.521, possession of
shoplifting gear; 609.561 to 609.563, arson in the first, second, or third degree; 609.582,
burglary in the first, second, third, or fourth degree; 609.625, aggravated forgery; 609.63,
forgery; 609.631, check forgery, offering a forged check; 609.635, obtaining signature
by false pretenses; 609.66, dangerous weapon; 609.665, setting a spring gun; 609.67,
unlawfully owning, possessing, or operating a machine gun; 609.687, adulteration; 609.71,
riot; 609.713, terrorist threats; 609.749, harassment, stalking; 260C.301, termination of
parental rights; 152.021 to 152.022 and 152.0262, controlled substance crime in the first
or second degree; 152.023, subdivision 1, clause (3) or (4), or 152.023, subdivision 2,
clause (4), controlled substance crime in third degree; 152.024, subdivision 1, clause
(2), (3), or (4), controlled substance crime in fourth degree; 617.23, repeat offenses of
indecent exposure; an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(d) Less than ten years have passed since the discharge of the sentence imposed for
the offense and the person has received a gross misdemeanor conviction for one of the
following offenses or the person has admitted to committing or a preponderance of the
evidence indicates that the person has committed an act that meets the definition of a gross
misdemeanor conviction for one of the following offenses: sections 609.224, fifth degree
assault; 609.2242 to 609.2243, domestic assault; 518B.01, subdivision 14, violation of
an order for protection; 609.3451, fifth degree criminal sexual conduct; 609.746, repeat
offenses of interference with privacy; 617.23, repeat offenses of indecent exposure;
617.241, obscene materials and performances; 617.243, indecent literature, distribution;
617.293, disseminating or displaying harmful material to minors; 609.71, riot; 609.66,
dangerous weapons; 609.749, harassment, stalking; 609.224, subdivision 2, paragraph
(c), fifth degree assault against a vulnerable adult by a caregiver; 609.23, mistreatment
of persons confined; 609.231, mistreatment of residents or patients; 609.2325, criminal
abuse of a vulnerable adult; 609.2335, financial exploitation of a vulnerable adult;
609.233, criminal neglect of a vulnerable adult; 609.234, failure to report maltreatment of
a vulnerable adult; 609.72, subdivision 3, disorderly conduct against a vulnerable adult;
609.265, abduction; 609.378, neglect or endangerment of a child; 609.377, malicious
punishment of a child; 609.324, subdivision 1a, other prohibited acts, minor engaged
in prostitution; 609.33, disorderly house; 609.52, theft; 609.582, burglary in the first,
second, third, or fourth degree; 609.631, check forgery, offering a forged check; 609.275,
attempt to coerce; an attempt or conspiracy to commit any of these offenses as defined in
Minnesota Statutes; or an offense in any other state or country where the elements are
substantially similar to any of the offenses listed in this paragraph.

(e) Less than seven years have passed since the discharge of the sentence imposed
for the offense and the person has received a misdemeanor conviction for one of the
following offenses or the person has admitted to committing or a preponderance of
the evidence indicates that the person has committed an act that meets the definition
of a misdemeanor conviction for one of the following offenses: sections 609.224, fifth
degree assault; 609.2242, domestic assault; 518B.01, violation of an order for protection;
609.3232, violation of an order for protection; 609.746, interference with privacy; 609.79,
obscene or harassing telephone calls; 609.795, letter, telegram, or package opening,
harassment; 617.23, indecent exposure; 609.2672, assault of an unborn child, third degree;
617.293, dissemination and display of harmful materials to minors; 609.66, dangerous
weapons; 609.665, spring guns; an attempt or conspiracy to commit any of these offenses
as defined in Minnesota Statutes; or an offense in any other state or country where the
elements are substantially similar to any of the offenses listed in this paragraph.

(f) The person has been identified by the child protection agency in the county where
the provider resides or a county where the provider has resided or by the statewide child
protection database as a person found by a preponderance of evidence under section
626.556 to be responsible for physical or sexual abuse of a child within the last seven years.

(g) The person has been identified by the adult protection agency in the county
where the provider resides or a county where the provider has resided or by the statewide
adult protection database as the person responsible for abuse or neglect of a vulnerable
adult within the last seven years.

(h) The person has refused to give written consent for disclosure of criminal history
records.

(i) The person has been denied a family child care license or has received a fine or a
sanction as a licensed child care provider that has not been reversed on appeal.

(j) The person has a family child care licensing disqualification that has not been
set aside.

(k) The person has admitted or a county has found that there is a preponderance of
evidence that fraudulent information was given to the county for child care assistance
application purposes or was used in submitting child care assistance bills for payment.

(l) The person has been convicted of the crime of theft by wrongfully obtaining
public assistance.

(m) The person has a household member age 13 or older who has access to children
during the hours that care is provided and who meets one of the conditions listed in
paragraphs (b) to (l).

(n) The person has a household member ages ten to 12 who has access to children
during the hours that care is provided; information or circumstances exist which provide
the county with articulable suspicion that further pertinent information may exist showing
the household member meets one of the conditions listed in paragraphs (b) to (l); and the
household member actually meets one of the conditions listed in paragraphs (b) to (l).

Sec. 5.

Minnesota Statutes 2006, section 119B.13, subdivision 3a, is amended to read:


Subd. 3a.

Provider rate differential for accreditation.

A family child care
provider or child care center shall be paid a 15 percent differential above the maximum
rate established in subdivision 1, up to the actual provider rate, if the provider or center
holds a current early childhood development credential or is accredited. For a family
child care provider, early childhood development credential and accreditation includes
an individual who has earned a child development associate degree, new text begin a child development
associate credential, new text end a diploma in child development from a Minnesota state technical
college, or a bachelor's degree in early childhood education from an accredited college
or university, or who is accredited by the National Association for Family Child Care
or the Competency Based Training and Assessment Program. For a child care center,
accreditation includes accreditation by the National Association for the Education of
Young Children, the Council on Accreditation, the National Early Childhood Program
Accreditation, the National deleted text begin School-Age Caredeleted text end new text begin AfterSchoolnew text end Association, or the National
Head Start Association Program of Excellence. For Montessori programs, accreditation
includes the American Montessori Society, Association of Montessori International-USA,
or the National Center for Montessori Education.

Sec. 6.

Minnesota Statutes 2006, section 119B.13, subdivision 7, is amended to read:


Subd. 7.

Absent days.

(a) Child care providers may not be reimbursed for more
than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more than
ten consecutive full-day absent days, unless the child has a documented medical condition
that causes more frequent absences. Documentation of medical conditions must be on
the forms and submitted according to the timelines established by the commissioner. If a
child attends for part of the time authorized to be in care in a day, but is absent for part of
the time authorized to be in care in that same day, the absent time will be reimbursed but
the time will not count toward the ten consecutive or 25 cumulative absent day limits.
If a child attends part of an authorized day, payment to the provider must be for the full
amount of care authorized for that day. Child care providers may only be reimbursed for
absent days if the provider has a written policy for child absences and charges all other
families in care for similar absences.

(b) Child care providers must be reimbursed for up to ten federal or state holidays
or designated holidays per year when the provider charges all families for these days
and the holiday or designated holiday falls on a day when the child is authorized to be
in attendance. Parents may substitute other cultural or religious holidays for the ten
recognized state and federal holidays. Holidays do not count toward the ten consecutive or
25 cumulative absent day limits.

(c) A family or child care provider may not be assessed an overpayment for an
absent day payment unless (1) there was an error in the amount of care authorized for the
family, (2) all of the allowed full-day absent payments for the child have been paid, or (3)
the family or provider did not timely report a change as required under law.

(d) The provider and family must receive notification of the number of absent days
used upon initial provider authorization for a family and when the family has used 15
cumulative absent days. Upon statewide implementation of the Minnesota Electronic
Child Care System, the provider and family new text begin must receive notification of the number of
absent days used upon initial provider new text end authorization for a family and ongoing notification
of the number of absent days used as of the date of the notification.

Sec. 7.

Minnesota Statutes 2006, section 144.225, subdivision 2b, is amended to read:


Subd. 2b.

Commissioner of health; duties.

Notwithstanding the designation of
certain of this data as confidential under subdivision 2 or private under subdivision 2a,
the commissioner shall give the commissioner of human services access to birth record
data and data contained in recognitions of parentage prepared according to section 257.75
necessary to enable the commissioner of human services to identify a child who is subject
to threatened injury, as defined in section 626.556, subdivision 2, paragraph (l), by a
person responsible for the child's care, as defined in section 626.556, subdivision 2,
paragraph deleted text begin (b), clause (1)deleted text end new text begin (e)new text end . The commissioner shall be given access to all data included
on official birth records.

ARTICLE 2

CHEMICAL AND MENTAL HEALTH

Section 1.

Minnesota Statutes 2006, section 245.4874, is amended to read:


245.4874 DUTIES OF COUNTY BOARD.

(a) The county board must:

(1) develop a system of affordable and locally available children's mental health
services according to sections 245.487 to 245.4887;

(2) establish a mechanism providing for interagency coordination as specified in
section 245.4875, subdivision 6;

(3) consider the assessment of unmet needs in the county as reported by the local
children's mental health advisory council under section 245.4875, subdivision 5, paragraph
(b), clause (3). The county shall provide, upon request of the local children's mental health
advisory council, readily available data to assist in the determination of unmet needs;

(4) assure that parents and providers in the county receive information about how to
gain access to services provided according to sections 245.487 to 245.4887;

(5) coordinate the delivery of children's mental health services with services
provided by social services, education, corrections, health, and vocational agencies to
improve the availability of mental health services to children and the cost-effectiveness of
their delivery;

(6) assure that mental health services delivered according to sections 245.487
to 245.4887 are delivered expeditiously and are appropriate to the child's diagnostic
assessment and individual treatment plan;

(7) provide the community with information about predictors and symptoms of
emotional disturbances and how to access children's mental health services according to
sections 245.4877 and 245.4878;

(8) provide for case management services to each child with severe emotional
disturbance according to sections 245.486; 245.4871, subdivisions 3 and 4; and 245.4881,
subdivisions 1, 3, and 5;

(9) provide for screening of each child under section 245.4885 upon admission
to a residential treatment facility, acute care hospital inpatient treatment, or informal
admission to a regional treatment center;

(10) prudently administer grants and purchase-of-service contracts that the county
board determines are necessary to fulfill its responsibilities under sections 245.487 to
245.4887;

(11) assure that mental health professionals, mental health practitioners, and case
managers employed by or under contract to the county to provide mental health services
are qualified under section 245.4871;

(12) assure that children's mental health services are coordinated with adult mental
health services specified in sections 245.461 to 245.486 so that a continuum of mental
health services is available to serve persons with mental illness, regardless of the person's
age;

(13) assure that culturally informed mental health consultants are used as necessary
to assist the county board in assessing and providing appropriate treatment for children of
cultural or racial minority heritage; and

(14) consistent with section 245.486, arrange for or provide a children's mental
health screening to a child receiving child protective services or a child in out-of-home
placement, a child for whom parental rights have been terminated, a child found to be
delinquent, and a child found to have committed a juvenile petty offense for the third
or subsequent time, unless a screeningnew text begin or diagnostic assessmentnew text end has been performed
within the previous 180 days, or the child is currently under the care of a mental health
professional. The court or county agency must notify a parent or guardian whose
parental rights have not been terminated of the potential mental health screening and the
option to prevent the screening by notifying the court or county agency in writing. The
screening shall be conducted with a screening instrument approved by the commissioner
of human services according to criteria that are updated and issued annually to ensure
that approved screening instruments are valid and useful for child welfare and juvenile
justice populations, and shall be conducted by a mental health practitioner as defined in
section 245.4871, subdivision 26, or a probation officer or local social services agency
staff person who is trained in the use of the screening instrument. Training in the use of the
instrument shall include training in the administration of the instrument, the interpretation
of its validity given the child's current circumstances, the state and federal data practices
laws and confidentiality standards, the parental consent requirement, and providing respect
for families and cultural values. If the screen indicates a need for assessment, the child's
family, or if the family lacks mental health insurance, the local social services agency,
in consultation with the child's family, shall have conducted a diagnostic assessment,
including a functional assessment, as defined in section 245.4871. The administration of
the screening shall safeguard the privacy of children receiving the screening and their
families and shall comply with the Minnesota Government Data Practices Act, chapter
13, and the federal Health Insurance Portability and Accountability Act of 1996, Public
Law 104-191. Screening results shall be considered private data and the commissioner
shall not collect individual screening results.

(b) When the county board refers clients to providers of children's therapeutic
services and supports under section 256B.0943, the county board must clearly identify
the desired services components not covered under section 256B.0943 and identify the
reimbursement source for those requested services, the method of payment, and the
payment rate to the provider.

Sec. 2.

Minnesota Statutes 2006, section 252.32, subdivision 3, is amended to read:


Subd. 3.

Amount of support grant; use.

Support grant amounts shall be
determined by the county social service agency. Services and items purchased with a
support grant must:

(1) be over and above the normal costs of caring for the dependent if the dependent
did not have a disability;

(2) be directly attributable to the dependent's disabling condition; and

(3) enable the family to delay or prevent the out-of-home placement of the dependent.

The design and delivery of services and items purchased under this section must
deleted text begin suit the dependent's chronological age anddeleted text end be provided in the least restrictive environment
possible, consistent with the needs identified in the individual service plan.

Items and services purchased with support grants must be those for which there
are no other public or private funds available to the family. Fees assessed to parents
for health or human services that are funded by federal, state, or county dollars are not
reimbursable through this program.

In approving or denying applications, the county shall consider the following factors:

(1) the extent and areas of the functional limitations of the disabled child;

(2) the degree of need in the home environment for additional support; and

(3) the potential effectiveness of the grant to maintain and support the person in
the family environment.

The maximum monthly grant amount shall be $250 per eligible dependent, or
$3,000 per eligible dependent per state fiscal year, within the limits of available funds.
The county social service agency may consider the dependent's supplemental security
income in determining the amount of the support grant.

Any adjustments to their monthly grant amount must be based on the needs of the
family and funding availability.

Sec. 3.

Minnesota Statutes 2006, section 253B.185, subdivision 2, is amended to read:


Subd. 2.

Transfer to correctional facility.

(a) If a person has been committed
under this section and later is committed to the custody of the commissioner of corrections
for any reason, including but not limited to, being sentenced for a crime or revocation of
the person's supervised release or conditional release under section 244.05deleted text begin , 609.108,
subdivision 6,deleted text end or 609.109, subdivision 7, the person shall be transferred to a facility
designated by the commissioner of corrections without regard to the procedures provided
in section 253B.18.

(b) If a person is committed under this section after a commitment to the
commissioner of corrections, the person shall first serve the sentence in a facility
designated by the commissioner of corrections. After the person has served the sentence,
the person shall be transferred to a treatment program designated by the commissioner
of human services.

Sec. 4.

Minnesota Statutes 2006, section 254A.03, subdivision 3, is amended to read:


Subd. 3.

Rules for chemical dependency care.

The commissioner of human
services shall establish by rule criteria to be used in determining the appropriate level
of chemical dependency caredeleted text begin , whether outpatient, inpatient or short-term treatment
programs,deleted text end for each recipient of public assistance seeking treatment for alcohol or other
drug dependency and abuse problems. deleted text begin The criteria shall address, at least, the family
relationship, past treatment history, medical or physical problems, arrest record, and
employment situation.
deleted text end

Sec. 5.

Minnesota Statutes 2006, section 254A.16, subdivision 2, is amended to read:


Subd. 2.

Program and service guidelines.

(a) The commissioner shall provide
program and service guidelines and technical assistance to the county boards in carrying
out services authorized under deleted text begin sectionsdeleted text end new text begin sectionnew text end 254A.08deleted text begin , 254A.12, 254A.14, and their
responsibilities under chapter 256Edeleted text end .

(b) The commissioner shall recommend to the governor means of improving
the efficiency and effectiveness of comprehensive program services in the state and
maximizing the use of nongovernmental funds for providing comprehensive programs.

Sec. 6.

Minnesota Statutes 2006, section 254B.02, subdivision 1, is amended to read:


Subdivision 1.

Chemical dependency treatment allocation.

The chemical
dependency funds appropriated for allocation shall be placed in a special revenue account.
The commissioner shall annually transfer funds from the chemical dependency fund to pay
for operation of the drug and alcohol abuse normative evaluation system and to pay for all
costs incurred by adding two positions for licensing of chemical dependency treatment
and rehabilitation programs located in hospitals for which funds are not otherwise
appropriated. deleted text begin For each year of the biennium ending June 30, 1999, the commissioner shall
allocate funds to the American Indian chemical dependency tribal account for treatment
of American Indians by eligible vendors under section 254B.05, equal to the amount
allocated in fiscal year 1997.deleted text end new text begin Six percent of the remaining money must be reserved for
tribal allocation under section 254B.09, subdivisions 4 and 5.new text end The commissioner shall
annually divide the money available in the chemical dependency fund that is not held
in reserve by counties from a previous allocation, or allocated to the American Indian
chemical dependency tribal account. Six percent of the remaining money must be
reserved for the nonreservation American Indian chemical dependency allocation for
treatment of American Indians by eligible vendors under section 254B.05, subdivision
1. The remainder of the money must be allocated among the counties according to the
following formula, using state demographer data and other data sources determined by
the commissioner:

(a) For purposes of this formula, American Indians and children under age 14 are
subtracted from the population of each county to determine the restricted population.

(b) The amount of chemical dependency fund expenditures for entitled persons for
services not covered by prepaid plans governed by section 256B.69 in the previous year is
divided by the amount of chemical dependency fund expenditures for entitled persons for
all services to determine the proportion of exempt service expenditures for each county.

(c) The prepaid plan months of eligibility is multiplied by the proportion of exempt
service expenditures to determine the adjusted prepaid plan months of eligibility for
each county.

(d) The adjusted prepaid plan months of eligibility is added to the number of
restricted population fee for service months of eligibility for the Minnesota family
investment program, general assistance, and medical assistance and divided by the county
restricted population to determine county per capita months of covered service eligibility.

(e) The number of adjusted prepaid plan months of eligibility for the state is added
to the number of fee for service months of eligibility for the Minnesota family investment
program, general assistance, and medical assistance for the state restricted population and
divided by the state restricted population to determine state per capita months of covered
service eligibility.

(f) The county per capita months of covered service eligibility is divided by the
state per capita months of covered service eligibility to determine the county welfare
caseload factor.

(g) The median married couple income for the most recent three-year period
available for the state is divided by the median married couple income for the same period
for each county to determine the income factor for each county.

(h) The county restricted population is multiplied by the sum of the county welfare
caseload factor and the county income factor to determine the adjusted population.

(i) $15,000 shall be allocated to each county.

(j) The remaining funds shall be allocated proportional to the county adjusted
population.

Sec. 7.

Minnesota Statutes 2006, section 254B.02, subdivision 5, is amended to read:


Subd. 5.

Administrative adjustment.

The commissioner may make payments to
local agencies from money allocated under this section to support administrative activities
under sections 254B.03 and 254B.04. The administrative payment must not exceed
five percent of the first $50,000, four percent of the next $50,000, and three percent of
the remaining payments for services from the allocation. deleted text begin Twenty-five percent of the
administrative allowance shall be advanced at the beginning of each quarter, based on
the payments for services made in the most recent quarter for which data is available.
Adjustment of any overestimate or underestimate based on actual expenditures shall be
made by the state agency by adjusting the administrative allowance for any succeeding
quarter.deleted text end

Sec. 8.

Minnesota Statutes 2006, section 254B.03, subdivision 1, is amended to read:


Subdivision 1.

Local agency duties.

(a) Every local agency shall provide chemical
dependency services to persons residing within its jurisdiction who meet criteria
established by the commissioner for placement in a chemical dependency residential or
nonresidential treatment service. Chemical dependency money must be administered
by the local agencies according to law and rules adopted by the commissioner under
sections 14.001 to 14.69.

(b) In order to contain costs, the county board shall, with the approval of the
commissioner of human services, select eligible vendors of chemical dependency services
who can provide economical and appropriate treatment. Unless the local agency is a social
services department directly administered by a county or human services board, the local
agency shall not be an eligible vendor under section 254B.05. The commissioner may
approve proposals from county boards to provide services in an economical manner or to
control utilization, with safeguards to ensure that necessary services are provided. If a
county implements a demonstration or experimental medical services funding plan, the
commissioner shall transfer the money as appropriate. If a county selects a vendor located
in another state, the county shall ensure that the vendor is in compliance with the rules
governing licensure of programs located in the state.

deleted text begin (c) The calendar year 2002 rate for vendors may not increase more than three
percent above the rate approved in effect on January 1, 2001. The calendar year 2003
rate for vendors may not increase more than three percent above the rate in effect on
January 1, 2002. The calendar years 2004 and 2005 rates may not exceed the rate in
effect on January 1, 2003.
 deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end A culturally specific vendor that provides assessments under a variance under
Minnesota Rules, part 9530.6610, shall be allowed to provide assessment services to
persons not covered by the variance.

Sec. 9.

Minnesota Statutes 2006, section 254B.03, subdivision 3, is amended to read:


Subd. 3.

Local agencies to pay state for county share.

deleted text begin Local agencies shall submit
invoices to the state on forms supplied by the commissioner and according to procedures
established by the commissioner.deleted text end Local agencies shall pay the state for the county share
of the deleted text begin invoiceddeleted text end servicesnew text begin authorized by the local agencynew text end . deleted text begin Payments shall be made at the
beginning of each month for services provided in the previous month. The commissioner
shall bill the county monthly for services, based on the most recent month for which
expenditure information is available. Adjustment of any overestimate or underestimate
based on actual expenditures shall be made by the state agency by adjusting the estimate
for any succeeding month.
deleted text end

Sec. 10.

Minnesota Statutes 2006, section 254B.06, subdivision 3, is amended to read:


Subd. 3.

Payment; denial.

The commissioner shall pay eligible vendors for
placements made by local agencies under section 254B.03, subdivision 1, and placements
by tribal designated agencies according to section 254B.09. The commissioner may
reduce or deny payment of the state share when services are not provided according to the
placement criteria established by the commissioner. The commissioner may pay for all or
a portion of improper county chemical dependency placements and bill the county for the
entire payment made when the placement did not comply with criteria established by the
commissioner. The commissioner may make payments to vendors and charge the county
100 percent of the payments if documentation of a county approved placement is received
more than 30 working days, exclusive of weekends and holidays, after the date services
begandeleted text begin ; or if the county approved invoice is received by the commissioner more than 120
days after the last date of service provided.deleted text end The commissioner shall not pay vendors until
private insurance company claims have been settled.

Sec. 11.

Minnesota Statutes 2006, section 256B.0943, subdivision 6, is amended to
read:


Subd. 6.

Provider entity clinical infrastructure requirements.

(a) To be
an eligible provider entity under this section, a provider entity must have a clinical
infrastructure that utilizes diagnostic assessment, an individualized treatment plan,
service delivery, and individual treatment plan review that are culturally competent,
child-centered, and family-driven to achieve maximum benefit for the client. The provider
entity must review and update the clinical policies and procedures every three years and
must distribute the policies and procedures to staff initially and upon each subsequent
update.

(b) The clinical infrastructure written policies and procedures must include policies
and procedures for:

(1) providing or obtaining a client's diagnostic assessment that identifies acute and
chronic clinical disorders, co-occurring medical conditions, sources of psychological and
environmental problems, and a functional assessment. The functional assessment must
clearly summarize the client's individual strengths and needs;

(2) developing an individual treatment plan that is:

(i) based on the information in the client's diagnostic assessment;

(ii) developed no later than the end of the first psychotherapy session after the
completion of the client's diagnostic assessment by the mental health professional who
provides the client's psychotherapy;

(iii) developed through a child-centered, family-driven planning process that
identifies service needs and individualized, planned, and culturally appropriate
interventions that contain specific treatment goals and objectives for the client and the
client's family or foster family;

(iv) reviewed at least once every 90 days and revised, if necessary; and

(v) signed by the client or, if appropriate, by the client's parent or other person
authorized by statute to consent to mental health services for the client;

(3) developing an individual behavior plan that documents services to be provided
by the mental health behavioral aide. The individual behavior plan must include:

(i) detailed instructions on the service to be provided;

(ii) time allocated to each service;

(iii) methods of documenting the child's behavior;

(iv) methods of monitoring the child's progress in reaching objectives; and

(v) goals to increase or decrease targeted behavior as identified in the individual
treatment plan;

(4) clinical supervision of the mental health practitioner and mental health behavioral
aide. A mental health professional must document the clinical supervision the professional
provides by cosigning individual treatment plans and making entries in the client's record
on supervisory activities. Clinical supervision does not include the authority to make or
terminate court-ordered placements of the child. A clinical supervisor must be available
for urgent consultation as required by the individual client's needs or the situation. Clinical
supervision may occur individually or in a small group to discuss treatment and review
progress toward goals. The focus of clinical supervision must be the client's treatment
needs and progress and the mental health practitioner's or behavioral aide's ability to
provide services;

(4a) CTSS certified provider entities providing day treatment programs must meet
the conditions in items (i) to (iii):

(i) the deleted text begin providerdeleted text end new text begin supervisornew text end must be present and available on the premises more
than 50 percent of the time in a five-working-day period during which the supervisee is
providing a mental health service;

(ii) the diagnosis and the client's individual treatment plan or a change in the
diagnosis or individual treatment plan must be made by or reviewed, approved, and signed
by the deleted text begin providerdeleted text end new text begin supervisornew text end ; and

(iii) every 30 days, the supervisor must review and sign the record of the client's care
for all activities in the preceding 30-day period;

(4b) for all other services provided under CTSS, clinical supervision standards
provided in items (i) to (iii) must be used:

(i) medical assistance shall reimburse a mental health practitioner who maintains a
consulting relationship with a mental health professional who accepts full professional
responsibility and is present on site for at least one observation during the first 12 hours
in which the mental health practitioner provides the individual, family, or group skills
training to the child or the child's family;

(ii) thereafter, the mental health professional is required to be present on site for
observation as clinically appropriate when the mental health practitioner is providing
individual, family, or group skills training to the child or the child's family; and

(iii) the observation must be a minimum of one clinical unit. The on-site presence of
the mental health professional must be documented in the child's record and signed by the
mental health professional who accepts full professional responsibility;

(5) providing direction to a mental health behavioral aide. For entities that employ
mental health behavioral aides, the clinical supervisor must be employed by the provider
entity or other certified children's therapeutic supports and services provider entity to
ensure necessary and appropriate oversight for the client's treatment and continuity
of care. The mental health professional or mental health practitioner giving direction
must begin with the goals on the individualized treatment plan, and instruct the mental
health behavioral aide on how to construct therapeutic activities and interventions that
will lead to goal attainment. The professional or practitioner giving direction must also
instruct the mental health behavioral aide about the client's diagnosis, functional status,
and other characteristics that are likely to affect service delivery. Direction must also
include determining that the mental health behavioral aide has the skills to interact with
the client and the client's family in ways that convey personal and cultural respect and
that the aide actively solicits information relevant to treatment from the family. The aide
must be able to clearly explain the activities the aide is doing with the client and the
activities' relationship to treatment goals. Direction is more didactic than is supervision
and requires the professional or practitioner providing it to continuously evaluate the
mental health behavioral aide's ability to carry out the activities of the individualized
treatment plan and the individualized behavior plan. When providing direction, the
professional or practitioner must:

(i) review progress notes prepared by the mental health behavioral aide for accuracy
and consistency with diagnostic assessment, treatment plan, and behavior goals and the
professional or practitioner must approve and sign the progress notes;

(ii) identify changes in treatment strategies, revise the individual behavior plan,
and communicate treatment instructions and methodologies as appropriate to ensure
that treatment is implemented correctly;

(iii) demonstrate family-friendly behaviors that support healthy collaboration among
the child, the child's family, and providers as treatment is planned and implemented;

(iv) ensure that the mental health behavioral aide is able to effectively communicate
with the child, the child's family, and the provider; and

(v) record the results of any evaluation and corrective actions taken to modify the
work of the mental health behavioral aide;

(6) providing service delivery that implements the individual treatment plan and
meets the requirements under subdivision 9; and

(7) individual treatment plan review. The review must determine the extent to which
the services have met the goals and objectives in the previous treatment plan. The review
must assess the client's progress and ensure that services and treatment goals continue to
be necessary and appropriate to the client and the client's family or foster family. Revision
of the individual treatment plan does not require a new diagnostic assessment unless the
client's mental health status has changed markedly. The updated treatment plan must be
signed by the client, if appropriate, and by the client's parent or other person authorized by
statute to give consent to the mental health services for the child.

Sec. 12.

Minnesota Statutes 2006, section 256B.0943, subdivision 9, is amended to
read:


Subd. 9.

Service delivery criteria.

(a) In delivering services under this section, a
certified provider entity must ensure that:

(1) each individual provider's caseload size permits the provider to deliver services
to both clients with severe, complex needs and clients with less intensive needs. The
provider's caseload size should reasonably enable the provider to play an active role in
service planning, monitoring, and delivering services to meet the client's and client's
family's needs, as specified in each client's individual treatment plan;

(2) site-based programs, including day treatment and preschool programs, provide
staffing and facilities to ensure the client's health, safety, and protection of rights, and that
the programs are able to implement each client's individual treatment plan;

(3) a day treatment program is provided to a group of clients by a multidisciplinary
team under the clinical supervision of a mental health professional. The day treatment
program must be provided in and by: (i) an outpatient hospital accredited by the Joint
Commission on Accreditation of Health Organizations and licensed under sections
144.50 to 144.55; (ii) a community mental health center under section 245.62; and (iii)
an entity that is under contract with the county board to operate a program that meets
the requirements of sections 245.4712, subdivision 2, and 245.4884, subdivision 2,
and Minnesota Rules, parts 9505.0170 to 9505.0475. The day treatment program must
stabilize the client's mental health status while developing and improving the client's
independent living and socialization skills. The goal of the day treatment program must be
to reduce or relieve the effects of mental illness and provide training to enable the client
to live in the community. The program must be available at least one day a week for a
deleted text begin minimumdeleted text end three-hour time block. The three-hour time block must include at least one
hour, but no more than two hours, of individual or group psychotherapy. The remainder
of the three-hour time block may include recreation therapy, socialization therapy, or
independent living skills therapy, but only if the therapies are included in the client's
individual treatment plan. Day treatment programs are not part of inpatient or residential
treatment services; and

(4) a preschool program is a structured treatment program offered to a child who
is at least 33 months old, but who has not yet reached the first day of kindergarten, by a
preschool multidisciplinary team in a day program licensed under Minnesota Rules, parts
9503.0005 to 9503.0175. The program must be available at least one day a week for a
minimum two-hour time block. The structured treatment program may include individual
or group psychotherapy and recreation therapy, socialization therapy, or independent
living skills therapy, if included in the client's individual treatment plan.

(b) A provider entity must deliver the service components of children's therapeutic
services and supports in compliance with the following requirements:

(1) individual, family, and group psychotherapy must be delivered as specified in
Minnesota Rules, part 9505.0323;

(2) individual, family, or group skills training must be provided by a mental health
professional or a mental health practitioner who has a consulting relationship with a
mental health professional who accepts full professional responsibility for the training;

(3) crisis assistance must be time-limited and designed to resolve or stabilize crisis
through arrangements for direct intervention and support services to the child and the
child's family. Crisis assistance must utilize resources designed to address abrupt or
substantial changes in the functioning of the child or the child's family as evidenced by
a sudden change in behavior with negative consequences for well being, a loss of usual
coping mechanisms, or the presentation of danger to self or others;

(4) medically necessary services that are provided by a mental health behavioral
aide must be designed to improve the functioning of the child and support the family in
activities of daily and community living. A mental health behavioral aide must document
the delivery of services in written progress notes. The mental health behavioral aide
must implement goals in the treatment plan for the child's emotional disturbance that
allow the child to acquire developmentally and therapeutically appropriate daily living
skills, social skills, and leisure and recreational skills through targeted activities. These
activities may include:

(i) assisting a child as needed with skills development in dressing, eating, and
toileting;

(ii) assisting, monitoring, and guiding the child to complete tasks, including
facilitating the child's participation in medical appointments;

(iii) observing the child and intervening to redirect the child's inappropriate behavior;

(iv) assisting the child in using age-appropriate self-management skills as related
to the child's emotional disorder or mental illness, including problem solving, decision
making, communication, conflict resolution, anger management, social skills, and
recreational skills;

(v) implementing deescalation techniques as recommended by the mental health
professional;

(vi) implementing any other mental health service that the mental health professional
has approved as being within the scope of the behavioral aide's duties; or

(vii) assisting the parents to develop and use parenting skills that help the child
achieve the goals outlined in the child's individual treatment plan or individual behavioral
plan. Parenting skills must be directed exclusively to the child's treatment; and

(5) direction of a mental health behavioral aide must include the following:

(i) a total of one hour of on-site observation by a mental health professional during
the first 12 hours of service provided to a child;

(ii) ongoing on-site observation by a mental health professional or mental health
practitioner for at least a total of one hour during every 40 hours of service provided
to a child; and

(iii) immediate accessibility of the mental health professional or mental health
practitioner to the mental health behavioral aide during service provision.

Sec. 13.

Minnesota Statutes 2006, section 256B.0943, subdivision 11, is amended to
read:


Subd. 11.

Documentation and billing.

(a) A provider entity must document the
services it provides under this section. The provider entity must ensure that the entity's
documentation standards meet the requirements of federal and state laws. Services billed
under this section that are not documented according to this subdivision shall be subject to
monetary recovery by the commissioner.new text begin The provider entity may not bill for anything
other than direct service time.
new text end

(b) An individual mental health provider must promptly document the following
in a client's record after providing services to the client:

(1) each occurrence of the client's mental health service, including the date, type,
length, and scope of the service;

(2) the name of the person who gave the service;

(3) contact made with other persons interested in the client, including representatives
of the courts, corrections systems, or schools. The provider must document the name
and date of each contact;

(4) any contact made with the client's other mental health providers, case manager,
family members, primary caregiver, legal representative, or the reason the provider did
not contact the client's family members, primary caregiver, or legal representative, if
applicable; and

(5) required clinical supervision, as appropriate.

Sec. 14.

Minnesota Statutes 2006, section 256B.0943, subdivision 12, is amended to
read:


Subd. 12.

Excluded services.

The following services are not eligible for medical
assistance payment as children's therapeutic services and supports:

(1) service components of children's therapeutic services and supports
simultaneously provided by more than one provider entity unless prior authorization is
obtained;

(2) children's therapeutic services and supports provided in violation of medical
assistance policy in Minnesota Rules, part 9505.0220;

(3) mental health behavioral aide services provided by a personal care assistant who
is not qualified as a mental health behavioral aide and employed by a certified children's
therapeutic services and supports provider entity;

(4) service components of CTSS that are the responsibility of a residential or
program license holder, including foster care providers under the terms of a service
agreement or administrative rules governing licensure; deleted text begin and
deleted text end

(5) adjunctive activities that may be offered by a provider entity but are not
otherwise covered by medical assistance, including:

(i) a service that is primarily recreation oriented or that is provided in a setting that
is not medically supervised. This includes sports activities, exercise groups, activities
such as craft hours, leisure time, social hours, meal or snack time, trips to community
activities, and tours;

(ii) a social or educational service that does not have or cannot reasonably be
expected to have a therapeutic outcome related to the client's emotional disturbance;

(iii) consultation with other providers or service agency staff about the care or
progress of a client;

(iv) prevention or education programs provided to the community; and

(v) treatment for clients with primary diagnoses of alcohol or other drug abusedeleted text begin .deleted text end new text begin ; and
new text end

new text begin (6) activities that are not direct service time.
 new text end

ARTICLE 3

CHILD WELFARE AND PUBLIC ASSISTANCE

Section 1.

Minnesota Statutes 2006, section 256.01, subdivision 2, is amended to read:


Subd. 2.

Specific powers.

Subject to the provisions of section 241.021, subdivision
2, the commissioner of human services shall carry out the specific duties in deleted text begin paragraphs (a)
through (cc)deleted text end new text begin clauses (1) to (29)new text end :

deleted text begin (a)deleted text end new text begin (1)new text end administer and supervise all forms of public assistance provided for by
state law and other welfare activities or services as are vested in the commissioner.
Administration and supervision of human services activities or services includes, but is
not limited to, assuring timely and accurate distribution of benefits, completeness of
service, and quality program management. In addition to administering and supervising
human services activities vested by law in the department, the commissioner shall have
the authority to:

deleted text begin (1)deleted text end new text begin (i)new text end require county agency participation in training and technical assistance
programs to promote compliance with statutes, rules, federal laws, regulations, and
policies governing human services;

deleted text begin (2)deleted text end new text begin (ii)new text end monitor, on an ongoing basis, the performance of county agencies in the
operation and administration of human services, enforce compliance with statutes, rules,
federal laws, regulations, and policies governing welfare services and promote excellence
of administration and program operation;

deleted text begin (3)deleted text end new text begin (iii)new text end develop a quality control program or other monitoring program to review
county performance and accuracy of benefit determinations;

deleted text begin (4)deleted text end new text begin (iv)new text end require county agencies to make an adjustment to the public assistance
benefits issued to any individual consistent with federal law and regulation and state law
and rule and to issue or recover benefits as appropriate;

deleted text begin (5)deleted text end new text begin (v)new text end delay or deny payment of all or part of the state and federal share of benefits
and administrative reimbursement according to the procedures set forth in section 256.017;

deleted text begin (6)deleted text end new text begin (vi)new text end make contracts with and grants to public and private agencies and
organizations, both profit and nonprofit, and individuals, using appropriated funds; and

deleted text begin (7)deleted text end new text begin (vii)new text end enter into contractual agreements with federally recognized Indian tribes
with a reservation in Minnesota to the extent necessary for the tribe to operate a federally
approved family assistance program or any other program under the supervision of the
commissioner. The commissioner shall consult with the affected county or counties in
the contractual agreement negotiations, if the county or counties wish to be included,
in order to avoid the duplication of county and tribal assistance program services. The
commissioner may establish necessary accounts for the purposes of receiving and
disbursing funds as necessary for the operation of the programsdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (b)deleted text end new text begin (2)new text end inform county agencies, on a timely basis, of changes in statute, rule, federal
law, regulation, and policy necessary to county agency administration of the programsdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (c)deleted text end new text begin (3)new text end administer and supervise all child welfare activities; promote the enforcement
of laws protecting disabled, dependent, neglected and delinquent children, and children
born to mothers who were not married to the children's fathers at the times of the
conception nor at the births of the children; license and supervise child-caring and
child-placing agencies and institutions; supervise the care of children in boarding and
foster homes or in private institutions; and generally perform all functions relating to the
field of child welfare now vested in the State Board of Controldeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (d)deleted text end new text begin (4)new text end administer and supervise all noninstitutional service to disabled persons,
including those who are visually impaired, hearing impaired, or physically impaired
or otherwise disabled. The commissioner may provide and contract for the care and
treatment of qualified indigent children in facilities other than those located and available
at state hospitals when it is not feasible to provide the service in state hospitalsdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (e)deleted text end new text begin (5)new text end assist and actively cooperate with other departments, agencies and
institutions, local, state, and federal, by performing services in conformity with the
purposes of Laws 1939, chapter 431deleted text begin .deleted text end new text begin ;
new text end

deleted text begin (f)deleted text end new text begin (6)new text end act as the agent of and cooperate with the federal government in matters of
mutual concern relative to and in conformity with the provisions of Laws 1939, chapter
431, including the administration of any federal funds granted to the state to aid in the
performance of any functions of the commissioner as specified in Laws 1939, chapter 431,
and including the promulgation of rules making uniformly available medical care benefits
to all recipients of public assistance, at such times as the federal government increases its
participation in assistance expenditures for medical care to recipients of public assistance,
the cost thereof to be borne in the same proportion as are grants of aid to said recipientsdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (g)deleted text end new text begin (7)new text end establish and maintain any administrative units reasonably necessary for the
performance of administrative functions common to all divisions of the departmentdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (h)deleted text end new text begin (8)new text end act as designated guardian of both the estate and the person of all the wards
of the state of Minnesota, whether by operation of law or by an order of court, without any
further act or proceeding whatever, except as to persons committed as developmentally
disabled. For children under the guardianship of the commissioner whose interests
would be best served by adoptive placement, the commissioner may contract with a
licensed child-placing agency or a Minnesota tribal social services agency to provide
adoption services. A contract with a licensed child-placing agency must be designed
to supplement existing county efforts and may not replace existing county programs,
unless the replacement is agreed to by the county board and the appropriate exclusive
bargaining representative or the commissioner has evidence that child placements of the
county continue to be substantially below that of other counties. Funds encumbered and
obligated under an agreement for a specific child shall remain available until the terms of
the agreement are fulfilled or the agreement is terminateddeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (i)deleted text end new text begin (9)new text end act as coordinating referral and informational center on requests for service
for newly arrived immigrants coming to Minnesotadeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (j)deleted text end new text begin (10)new text end the specific enumeration of powers and duties as hereinabove set forth shall
in no way be construed to be a limitation upon the general transfer of powers herein
containeddeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (k)deleted text end new text begin (11)new text end establish county, regional, or statewide schedules of maximum fees and
charges which may be paid by county agencies for medical, dental, surgical, hospital,
nursing and nursing home care and medicine and medical supplies under all programs
of medical care provided by the state and for congregate living care under the income
maintenance programsdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (l)deleted text end new text begin (12)new text end have the authority to conduct and administer experimental projects to
test methods and procedures of administering assistance and services to recipients or
potential recipients of public welfare. To carry out such experimental projects, it is
further provided that the commissioner of human services is authorized to waive the
enforcement of existing specific statutory program requirements, rules, and standards
in one or more counties. The order establishing the waiver shall provide alternative
methods and procedures of administration, shall not be in conflict with the basic purposes,
coverage, or benefits provided by law, and in no event shall the duration of a project
exceed four years. It is further provided that no order establishing an experimental project
as authorized by the provisions of this section shall become effective until the following
conditions have been met:

deleted text begin (1)deleted text end new text begin (i)new text end the secretary of health and human services of the United States has agreed, for
the same project, to waive state plan requirements relative to statewide uniformity; and

deleted text begin (2)deleted text end new text begin (ii)new text end a comprehensive plan, including estimated project costs, shall be approved by
the Legislative Advisory Commission and filed with the commissioner of administrationdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (m)deleted text end new text begin (13)new text end according to federal requirements, establish procedures to be followed by
local welfare boards in creating citizen advisory committees, including procedures for
selection of committee membersdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (n)deleted text end new text begin (14)new text end allocate federal fiscal disallowances or sanctions which are based on quality
control error rates for the aid to families with dependent children program formerly
codified in sections 256.72 to 256.87, medical assistance, or food stamp program in the
following manner:

deleted text begin (1)deleted text end new text begin (i)new text end one-half of the total amount of the disallowance shall be borne by the county
boards responsible for administering the programs. For the medical assistance and the
AFDC program formerly codified in sections 256.72 to 256.87, disallowances shall be
shared by each county board in the same proportion as that county's expenditures for the
sanctioned program are to the total of all counties' expenditures for the AFDC program
formerly codified in sections 256.72 to 256.87, and medical assistance programs. For the
food stamp program, sanctions shall be shared by each county board, with 50 percent of
the sanction being distributed to each county in the same proportion as that county's
administrative costs for food stamps are to the total of all food stamp administrative costs
for all counties, and 50 percent of the sanctions being distributed to each county in the
same proportion as that county's value of food stamp benefits issued are to the total of
all benefits issued for all counties. Each county shall pay its share of the disallowance
to the state of Minnesota. When a county fails to pay the amount due hereunder, the
commissioner may deduct the amount from reimbursement otherwise due the county, or
the attorney general, upon the request of the commissioner, may institute civil action
to recover the amount due; and

deleted text begin (2)deleted text end new text begin (ii)new text end notwithstanding the provisions of deleted text begin clause (1)deleted text end new text begin item (i)new text end , if the disallowance
results from knowing noncompliance by one or more counties with a specific program
instruction, and that knowing noncompliance is a matter of official county board record,
the commissioner may require payment or recover from the county or counties, in the
manner prescribed in deleted text begin clause (1)deleted text end new text begin item (i)new text end , an amount equal to the portion of the total
disallowance which resulted from the noncompliance, and may distribute the balance of
the disallowance according to deleted text begin clause (1).deleted text end new text begin item (i);
new text end

deleted text begin (o)deleted text end new text begin (15)new text end develop and implement special projects that maximize reimbursements and
result in the recovery of money to the state. For the purpose of recovering state money,
the commissioner may enter into contracts with third parties. Any recoveries that result
from projects or contracts entered into under this deleted text begin paragraphdeleted text end new text begin clausenew text end shall be deposited in
the state treasury and credited to a special account until the balance in the account reaches
$1,000,000. When the balance in the account exceeds $1,000,000, the excess shall be
transferred and credited to the general fund. All money in the account is appropriated to
the commissioner for the purposes of this deleted text begin paragraph.deleted text end new text begin clause;
new text end

deleted text begin (p)deleted text end new text begin (16)new text end have the authority to make direct payments to facilities providing shelter
to women and their children according to section 256D.05, subdivision 3. Upon
the written request of a shelter facility that has been denied payments under section
256D.05, subdivision 3, the commissioner shall review all relevant evidence and make
a determination within 30 days of the request for review regarding issuance of direct
payments to the shelter facility. Failure to act within 30 days shall be considered a
determination not to issue direct paymentsdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (q)deleted text end new text begin (17)new text end have the authority to establish and enforce the following county reporting
requirements:

deleted text begin (1)deleted text end new text begin (i)new text end the commissioner shall establish fiscal and statistical reporting requirements
necessary to account for the expenditure of funds allocated to counties for human
services programs. When establishing financial and statistical reporting requirements, the
commissioner shall evaluate all reports, in consultation with the counties, to determine if
the reports can be simplified or the number of reports can be reduced;

deleted text begin (2)deleted text end new text begin (ii)new text end the county board shall submit monthly or quarterly reports to the department
as required by the commissioner. Monthly reports are due no later than 15 working days
after the end of the month. Quarterly reports are due no later than 30 calendar days after
the end of the quarter, unless the commissioner determines that the deadline must be
shortened to 20 calendar days to avoid jeopardizing compliance with federal deadlines
or risking a loss of federal funding. Only reports that are complete, legible, and in the
required format shall be accepted by the commissioner;

deleted text begin (3)deleted text end new text begin (iii)new text end if the required reports are not received by the deadlines established in deleted text begin clause
(2)deleted text end new text begin item (ii)new text end , the commissioner may delay payments and withhold funds from the county
board until the next reporting period. When the report is needed to account for the use of
federal funds and the late report results in a reduction in federal funding, the commissioner
shall withhold from the county boards with late reports an amount equal to the reduction
in federal funding until full federal funding is received;

deleted text begin (4)deleted text end new text begin (iv)new text end a county board that submits reports that are late, illegible, incomplete, or not
in the required format for two out of three consecutive reporting periods is considered
noncompliant. When a county board is found to be noncompliant, the commissioner
shall notify the county board of the reason the county board is considered noncompliant
and request that the county board develop a corrective action plan stating how the
county board plans to correct the problem. The corrective action plan must be submitted
to the commissioner within 45 days after the date the county board received notice
of noncompliance;

deleted text begin (5)deleted text end new text begin (v)new text end the final deadline for fiscal reports or amendments to fiscal reports is one year
after the date the report was originally due. If the commissioner does not receive a report
by the final deadline, the county board forfeits the funding associated with the report for
that reporting period and the county board must repay any funds associated with the
report received for that reporting period;

deleted text begin (6)deleted text end new text begin (vi)new text end the commissioner may not delay payments, withhold funds, or require
repayment under deleted text begin clause (3) or (5)deleted text end new text begin item (iii) or (v)new text end if the county demonstrates that the
commissioner failed to provide appropriate forms, guidelines, and technical assistance to
enable the county to comply with the requirements. If the county board disagrees with an
action taken by the commissioner under deleted text begin clause (3) or (5)deleted text end new text begin item (iii) or (v)new text end , the county board
may appeal the action according to sections 14.57 to 14.69; and

deleted text begin (7)deleted text end new text begin (vii)new text end counties subject to withholding of funds under deleted text begin clause (3)deleted text end new text begin item (iii)new text end or
forfeiture or repayment of funds under deleted text begin clause (5)deleted text end new text begin item (v)new text end shall not reduce or withhold
benefits or services to clients to cover costs incurred due to actions taken by the
commissioner under deleted text begin clause (3) or (5).deleted text end new text begin item (iii) or (v);
new text end

deleted text begin (r)deleted text end new text begin (18)new text end allocate federal fiscal disallowances or sanctions for audit exceptions when
federal fiscal disallowances or sanctions are based on a statewide random sample for
the foster care program under title IV-E of the Social Security Act, United States Code,
title 42, in direct proportion to each county's title IV-E foster care maintenance claim
for that perioddeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (s)deleted text end new text begin (19) new text end be responsible for ensuring the detection, prevention, investigation, and
resolution of fraudulent activities or behavior by applicants, recipients, and other
participants in the human services programs administered by the departmentdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (t)deleted text end new text begin (20) new text end require county agencies to identify overpayments, establish claims, and
utilize all available and cost-beneficial methodologies to collect and recover these
overpayments in the human services programs administered by the departmentdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (u)deleted text end new text begin (21) new text end have the authority to administer a drug rebate program for drugs purchased
pursuant to the prescription drug program established under section 256.955 after the
beneficiary's satisfaction of any deductible established in the program. The commissioner
shall require a rebate agreement from all manufacturers of covered drugs as defined in
section 256B.0625, subdivision 13. Rebate agreements for prescription drugs delivered on
or after July 1, 2002, must include rebates for individuals covered under the prescription
drug program who are under 65 years of age. For each drug, the amount of the rebate shall
be equal to the rebate as defined for purposes of the federal rebate program in United
States Code, title 42, section 1396r-8. The manufacturers must provide full payment
within 30 days of receipt of the state invoice for the rebate within the terms and conditions
used for the federal rebate program established pursuant to section 1927 of title XIX of
the Social Security Act. The manufacturers must provide the commissioner with any
information necessary to verify the rebate determined per drug. The rebate program shall
utilize the terms and conditions used for the federal rebate program established pursuant
to section 1927 of title XIX of the Social Security Actdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (v)deleted text end new text begin (22) new text end have the authority to administer the federal drug rebate program for drugs
purchased under the medical assistance program as allowed by section 1927 of title XIX
of the Social Security Act and according to the terms and conditions of section 1927.
Rebates shall be collected for all drugs that have been dispensed or administered in an
outpatient setting and that are from manufacturers who have signed a rebate agreement
with the United States Department of Health and Human Servicesdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (w)deleted text end new text begin (23) new text end have the authority to administer a supplemental drug rebate program for
drugs purchased under the medical assistance program. The commissioner may enter into
supplemental rebate contracts with pharmaceutical manufacturers and may require prior
authorization for drugs that are from manufacturers that have not signed a supplemental
rebate contract. Prior authorization of drugs shall be subject to the provisions of section
256B.0625, subdivision 13deleted text begin .deleted text end new text begin ;
new text end

deleted text begin (x)deleted text end new text begin (24) new text end operate the department's communication systems account established
in Laws 1993, First Special Session chapter 1, article 1, section 2, subdivision 2, to
manage shared communication costs necessary for the operation of the programs the
commissioner supervises. A communications account may also be established for each
regional treatment center which operates communications systems. Each account must be
used to manage shared communication costs necessary for the operations of the programs
the commissioner supervises. The commissioner may distribute the costs of operating and
maintaining communication systems to participants in a manner that reflects actual usage.
Costs may include acquisition, licensing, insurance, maintenance, repair, staff time and
other costs as determined by the commissioner. Nonprofit organizations and state, county,
and local government agencies involved in the operation of programs the commissioner
supervises may participate in the use of the department's communications technology and
share in the cost of operation. The commissioner may accept on behalf of the state any
gift, bequest, devise or personal property of any kind, or money tendered to the state for
any lawful purpose pertaining to the communication activities of the department. Any
money received for this purpose must be deposited in the department's communication
systems accounts. Money collected by the commissioner for the use of communication
systems must be deposited in the state communication systems account and is appropriated
to the commissioner for purposes of this sectiondeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (y)deleted text end new text begin (25) new text end receive any federal matching money that is made available through the
medical assistance program for the consumer satisfaction survey. Any federal money
received for the survey is appropriated to the commissioner for this purpose. The
commissioner may expend the federal money received for the consumer satisfaction
survey in either year of the bienniumdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (z)deleted text end new text begin (26) new text end designate community information and referral call centers and incorporate
cost reimbursement claims from the designated community information and referral
call centers into the federal cost reimbursement claiming processes of the department
according to federal law, rule, and regulations. Existing information and referral centers
provided by Greater Twin Cities United Way or existing call centers for which Greater
Twin Cities United Way has legal authority to represent, shall be included in these
designations upon review by the commissioner and assurance that these services are
accredited and in compliance with national standards. Any reimbursement is appropriated
to the commissioner and all designated information and referral centers shall receive
payments according to normal department schedules established by the commissioner
upon final approval of allocation methodologies from the United States Department of
Health and Human Services Division of Cost Allocation or other appropriate authoritiesdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (aa)deleted text end new text begin (27) new text end develop recommended standards for foster care homes that address the
components of specialized therapeutic services to be provided by foster care homes with
those servicesdeleted text begin .deleted text end new text begin ;
new text end

deleted text begin (bb)deleted text end new text begin (28) new text end authorize the method of payment to or from the department as part of the
human services programs administered by the department. This authorization includes the
receipt or disbursement of funds held by the department in a fiduciary capacity as part of
the human services programs administered by the departmentdeleted text begin .deleted text end new text begin ; and
new text end

deleted text begin (cc)deleted text end new text begin (29) new text end have the authority to administer a drug rebate program for drugs purchased
for persons eligible for general assistance medical care under section 256D.03, subdivision
3. For manufacturers that agree to participate in the general assistance medical care rebate
program, the commissioner shall enter into a rebate agreement for covered drugs as
defined in section 256B.0625, subdivisions 13 and 13d. For each drug, the amount of the
rebate shall be equal to the rebate as defined for purposes of the federal rebate program in
United States Code, title 42, section 1396r-8. The manufacturers must provide payment
within the terms and conditions used for the federal rebate program established under
section 1927 of title XIX of the Social Security Act. The rebate program shall utilize
the terms and conditions used for the federal rebate program established under section
1927 of title XIX of the Social Security Act.

deleted text begin Effective January 1, 2006, drug coverage under general assistance medical care shall
be limited to those prescription drugs that:
 deleted text end

deleted text begin (1) are covered under the medical assistance program as described in section
256B.0625, subdivisions 13 and 13d; and
 deleted text end

deleted text begin (2) are provided by manufacturers that have fully executed general assistance
medical care rebate agreements with the commissioner and comply with such agreements.
Prescription drug coverage under general assistance medical care shall conform to
coverage under the medical assistance program according to section 256B.0625,
subdivisions 13 to 13g.
 deleted text end

The rebate revenues collected under the drug rebate program are deposited in the
general fund.

Sec. 2.

Minnesota Statutes 2006, section 256.045, subdivision 3b, is amended to read:


Subd. 3b.

Standard of evidence for maltreatment and disqualification hearings.

(a) The state human services referee shall determine that maltreatment has occurred if a
preponderance of evidence exists to support the final disposition under sections 626.556
and 626.557. For purposes of hearings regarding disqualification, the state human services
referee shall affirm the proposed disqualification in an appeal under subdivision 3,
paragraph (a), clause (9), if a preponderance of the evidence shows the individual has:

(1) committed maltreatment under section 626.556 or 626.557, which is serious or
recurring;

(2) committed an act or acts meeting the definition of any of the crimes listed in
section 245C.15, subdivisions 1 to 4; or

(3) failed to make required reports under section 626.556 or 626.557, for incidents
in which the final disposition under section 626.556 or 626.557 was substantiated
maltreatment that was serious or recurring.

(b) If the disqualification is affirmed, the state human services referee shall
determine whether the individual poses a risk of harm in accordance with the requirements
of section 245C.16, and whether the disqualification should be set aside or not set aside.
In determining whether the disqualification should be set aside, the human services
referee shall consider all of the characteristics that cause the individual to be disqualified,
including those characteristics that were not subject to review under paragraph (a), in
order to determine whether the individual poses a risk of harm. A decision to set aside
a disqualification that is the subject of the hearing constitutes a determination that the
individual does not pose a risk of harm and that the individual may provide direct contact
services in the individual program specified in the set aside. If a determination that the
information relied upon to disqualify an individual was correct and is conclusive under
section 245C.29, and the individual is subsequently disqualified under section 245C.14,
the individual has a right to again request reconsideration on the risk of harm under section
245C.21. Subsequent determinations regarding risk of harm are not subject to another
hearing under this section.

(c) The state human services referee shall recommend an order to the commissioner
of health, educationnew text begin , correctionsnew text end , or human services, as applicable, who shall issue a final
order. The commissioner shall affirm, reverse, or modify the final disposition. Any order
of the commissioner issued in accordance with this subdivision is conclusive upon the
parties unless appeal is taken in the manner provided in subdivision 7. In any licensing
appeal under chapters 245A and 245C and sections 144.50 to 144.58 and 144A.02 to
144A.46, the commissioner's determination as to maltreatment is conclusive, as provided
under section 245C.29.

Sec. 3.

Minnesota Statutes 2006, section 256.0451, subdivision 1, is amended to read:


Subdivision 1.

Scope.

The requirements in this section apply to all fair hearings
and appeals under section 256.045, subdivision 3, paragraph (a), clauses (1), (2), (3),
(5), (6), deleted text begin anddeleted text end (7)new text begin , and (8)new text end . Except as provided in subdivisions 3 and 19, the requirements
under this section apply to fair hearings and appeals under section 256.045, subdivision 3,
paragraph (a), clauses (4), deleted text begin (8), anddeleted text end (9)new text begin , and (10)new text end .

The term "person" is used in this section to mean an individual who, on behalf
of themselves or their household, is appealing or disputing or challenging an action,
a decision, or a failure to act, by an agency in the human services system. When a
person involved in a proceeding under this section is represented by an attorney or by
an authorized representative, the term "person" also refers to the person's attorney or
authorized representative. Any notice sent to the person involved in the hearing must also
be sent to the person's attorney or authorized representative.

The term "agency" includes the county human services agency, the state human
services agency, and, where applicable, any entity involved under a contract, subcontract,
grant, or subgrant with the state agency or with a county agency, that provides or operates
programs or services in which appeals are governed by section 256.045.

Sec. 4.

Minnesota Statutes 2006, section 256.0451, subdivision 3, is amended to read:


Subd. 3.

Agency appeal summary.

(a) Except in fair hearings and appeals under
section 256.045, subdivision 3, paragraph (a), clauses (4), deleted text begin (8), anddeleted text end (9),new text begin and (10),new text end the
agency involved in an appeal must prepare a state agency appeal summary for each fair
hearing appeal. The state agency appeal summary shall be mailed or otherwise delivered
to the person who is involved in the appeal at least three working days before the date
of the hearing. The state agency appeal summary must also be mailed or otherwise
delivered to the department's Appeals Office at least three working days before the date of
the fair hearing appeal.

(b) In addition, the appeals referee shall confirm that the state agency appeal
summary is mailed or otherwise delivered to the person involved in the appeal as required
under paragraph (a). The person involved in the fair hearing should be provided, through
the state agency appeal summary or other reasonable methods, appropriate information
about the procedures for the fair hearing and an adequate opportunity to prepare. These
requirements apply equally to the state agency or an entity under contract when involved
in the appeal.

(c) The contents of the state agency appeal summary must be adequate to inform the
person involved in the appeal of the evidence on which the agency relies and the legal
basis for the agency's action or determination.

Sec. 5.

Minnesota Statutes 2006, section 256.0451, subdivision 11, is amended to read:


Subd. 11.

Hearing facilities and equipment.

The appeals referee shall conduct
the hearing in the county where the person involved resides, unless an alternate location
is mutually agreed upon before the hearing, or unless the person has agreed to a hearing
by telephone. Hearings under section 256.045, subdivision 3, paragraph (a), clauses (4),
deleted text begin (8), anddeleted text end (9)new text begin , and (10)new text end , must be conducted in the county where the determination was made,
unless an alternate location is mutually agreed upon before the hearing. The hearing room
shall be of sufficient size and layout to adequately accommodate both the number of
individuals participating in the hearing and any identified special needs of any individual
participating in the hearing. The appeals referee shall ensure that all communication and
recording equipment that is necessary to conduct the hearing and to create an adequate
record is present and functioning properly. If any necessary communication or recording
equipment fails or ceases to operate effectively, the appeals referee shall take any steps
necessary, including stopping or adjourning the hearing, until the necessary equipment is
present and functioning properly. All reasonable efforts shall be undertaken to prevent and
avoid any delay in the hearing process caused by defective communication or recording
equipment.

Sec. 6.

Minnesota Statutes 2006, section 256.0451, subdivision 19, is amended to read:


Subd. 19.

Developing the record.

The appeals referee shall accept all evidence,
except evidence privileged by law, that is commonly accepted by reasonable people in
the conduct of their affairs as having probative value on the issues to be addressed at
the hearing. Except in fair hearings and appeals under section 256.045, subdivision 3,
paragraph (a), clauses (4), deleted text begin (8), anddeleted text end (9)new text begin , and (10)new text end , in cases involving medical issues such
as a diagnosis, a physician's report, or a review team's decision, the appeals referee
shall consider whether it is necessary to have a medical assessment other than that of
the individual making the original decision. When necessary, the appeals referee shall
require an additional assessment be obtained at agency expense and made part of the
hearing record. The appeals referee shall ensure for all cases that the record is sufficiently
complete to make a fair and accurate decision.

Sec. 7.

Minnesota Statutes 2006, section 256.046, subdivision 1, is amended to read:


Subdivision 1.

Hearing authority.

A local agency must initiate an administrative
fraud disqualification hearing for individuals, including child care providers caring for
children receiving child care assistance, accused of wrongfully obtaining assistance or
intentional program violations, in lieu of a criminal action when it has not been pursued, in
the aid to families with dependent children program formerly codified in sections 256.72
to 256.87, MFIP, the diversionary work program, child care assistance programs, general
assistance, family general assistance program formerly codified in section 256D.05,
subdivision 1, clause (15), Minnesota supplemental aid, food stamp programs, general
assistance medical care, MinnesotaCare for adults without children, and upon federal
approval, all categories of medical assistance and remaining categories of MinnesotaCare
except for children through age 18. The Department of Human Services, in lieu of a local
agency, may initiate an administrative fraud disqualification hearing when the state agency
is directly responsible for administration of the health care program for which benefits
were wrongfully obtained. The hearing is subject to the requirements of section 256.045
and the requirements in Code of Federal Regulations, title 7, section 273.16, for the food
stamp program deleted text begin and title 45, section 235.112, as of September 30, 1995, fordeleted text end new text begin ,new text end the cash grant,
medical care programs, and child care assistance under chapter 119B.

Sec. 8.

Minnesota Statutes 2006, section 256E.35, subdivision 7, is amended to read:


Subd. 7.

Program reporting.

The fiscal agent on behalf of each fiduciary
organization participating in a family assets for independence initiative must report
quarterly to the commissioner of human services deleted text begin and to the commissioner of educationdeleted text end
identifying the participants with accounts, the number of accounts, the amount of savings
and matches for each participant's account, the uses of the account, and the number of
businesses, homes, and educational services paid for with money from the account, as
well as other information that may be required for the commissioner to administer the
program and meet federal TANF reporting requirements.

Sec. 9.

Minnesota Statutes 2006, section 256J.21, subdivision 3, is amended to read:


Subd. 3.

Initial income test.

The county agency shall determine initial eligibility
by considering all earned and unearned income that is not excluded under subdivision 2.
To be eligible for MFIP, the assistance unit's countable income minus the disregards in
paragraphs (a) and (b) must be below the transitional standard of assistance according to
section 256J.24 for that size assistance unit.

(a) The initial eligibility determination must disregard the following items:

(1) the employment disregard is 18 percent of the gross earned income whether or
not the member is working full time or part time;

(2) dependent care costs must be deducted from gross earned income for the actual
amount paid for dependent care up to a maximum of $200 per month for each child less
than two years of age, and $175 per month for each child two years of age and older under
this chapter and chapter 119B;

(3) all payments made according to a court order for spousal support or the support
of children not living in the assistance unit's household shall be disregarded from the
income of the person with the legal obligation to pay support, provided that, if there has
been a change in the financial circumstances of the person with the legal obligation to pay
support since the support order was entered, the person with the legal obligation to pay
support has petitioned for a modification of the support order; and

(4) an allocation for the unmet need of an ineligible spouse or an ineligible child
under the age of 21 for whom the caregiver is financially responsible and who lives with
the caregiver according to section 256J.36.

(b) Notwithstanding paragraph (a), when determining initial eligibility for applicant
units when at least one member has received MFIP in this state within four months of
the most recent application for MFIP, apply the disregard as defined in section 256J.08,
subdivision 24, for all unit members.

After initial eligibility is established, the assistance payment calculation is based on
the monthly income test.

new text begin (c) Combat pay received by a member of the United States armed forces deployed to
a designated combat zone shall be excluded from household income for the duration of the
member's deployment if the additional pay is the result of deployment to or while serving
in a combat zone, and it was not received immediately prior to serving in the combat zone.
 new text end

Sec. 10.

Minnesota Statutes 2006, section 256J.45, subdivision 2, is amended to read:


Subd. 2.

General information.

The MFIP orientation must consist of a presentation
that informs caregivers of:

(1) the necessity to obtain immediate employment;

(2) the work incentives under MFIP, including the availability of the federal earned
income tax credit and the Minnesota working family tax credit;

(3) the requirement to comply with the employment plan and other requirements
of the employment and training services component of MFIP, including a description
of the range of work and training activities that are allowable under MFIP to meet the
individual needs of participants;

(4) the consequences for failing to comply with the employment plan and other
program requirements, and that the county agency may not impose a sanction when failure
to comply is due to the unavailability of child care or other circumstances where the
participant has good cause under subdivision 3;

(5) the rights, responsibilities, and obligations of participants;

(6) the types and locations of child care services available through the county agency;

(7) the availability and the benefits of the early childhood health and developmental
screening under sections 121A.16 to 121A.19; deleted text begin 123B.02, subdivision 16; and 123B.10;deleted text end

(8) the caregiver's eligibility for transition year child care assistance under section
119B.05;

(9) the availability of all health care programs, including transitional medical
assistance;

(10) the caregiver's option to choose an employment and training provider and
information about each provider, including but not limited to, services offered, program
components, job placement rates, job placement wages, and job retention rates;

(11) the caregiver's option to request approval of an education and training plan
according to section 256J.53;

(12) the work study programs available under the higher education system; and

(13) information about the 60-month time limit exemptions under the family violence
waiver and referral information about shelters and programs for victims of family violence.

Sec. 11.

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


Subd. 13.

Work activity.

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

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

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

(3) unpaid work experience, including community service, volunteer work,
the community work experience program as specified in section 256J.67, unpaid
apprenticeships or internships, and supported work when a wage subsidy is not provided;

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

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

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

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

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

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

Sec. 12.

Minnesota Statutes 2006, section 256J.50, subdivision 11, is amended to read:


Subd. 11.

Coordination.

The county agency and the county agency's employment
and training providers must consult and coordinate with other providers of employment
and training services to identify existing resources, in order to prevent duplication of
services, to assure that other programs' services are available to enable participants
to achieve self-sufficiency, and to assure that costs for these other services for which
participants are eligible are not incurred by MFIP. At a minimum, the county agency and
its providers must coordinate with deleted text begin Jobs Training and Partnership Actdeleted text end new text begin 1998 Workforce
Investment Actnew text end providers and with any other relevant employment, training, and education
programs in the county.

Sec. 13.

Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:


Subdivision 1.

Participation requirements.

(a) All caregivers must participate
in employment services under sections 256J.515 to 256J.57 concurrent with receipt of
MFIP assistance.

deleted text begin (b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are
exempt from participation requirements.deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end Participants under paragraph (a) must develop and comply with an
employment plan under section 256J.521 or section 256J.54 in the case of a participant
under the age of 20 who has not obtained a high school diploma or its equivalent.

deleted text begin (d)deleted text end new text begin (c)new text end With the exception of participants under the age of 20 who must meet
the education requirements of section 256J.54, all participants must meet the hourly
participation requirements of TANF or the hourly requirements listed in clauses (1) to
(3), whichever is higher.

(1) In single-parent families with no children under six years of age, the job
counselor and the caregiver must develop an employment plan that includes 30 to 35
hours per week of work activities.

(2) In single-parent families with a child under six years of age, the job counselor
and the caregiver must develop an employment plan that includes 20 to 35 hours per
week of work activities.

(3) In two-parent families, the job counselor and the caregivers must develop
employment plans which result in a combined total of at least 55 hours per week of work
activities.

deleted text begin (e)deleted text end new text begin (d)new text end Failure to participate in employment services, including the requirement to
develop and comply with an employment plan, including hourly requirements, without
good cause under section 256J.57, shall result in the imposition of a sanction under section
256J.46.

Sec. 14.

Minnesota Statutes 2006, section 256J.645, is amended to read:


256J.645 INDIAN TRIBE MFIP EMPLOYMENT SERVICES.

Subdivision 1.

Authorization to enter into agreements.

Effective July 1, 1997, the
commissioner may enter into agreements with federally recognized Indian tribes with a
reservation in the state to provide MFIP new text begin and DWP new text end employment services to members of the
Indian tribe and to other caregivers who are a part of the tribal member's MFIP new text begin or DWP
new text end assistance unit. For purposes of this section, "Indian tribe" means a tribe, band, nation, or
other federally recognized group or community of Indians. The commissioner may also
enter into an agreement with a consortium of Indian tribes providing the governing body
of each Indian tribe in the consortium complies with the provisions of this section.

Subd. 2.

Tribal requirements.

The Indian tribe must:

(1) agree to fulfill the responsibilities provided under the employment services
component of MFIP new text begin and DWP new text end regarding operation of MFIP new text begin and DWP new text end employment
services, as designated by the commissioner;

(2) operate its employment services program within a geographic service area not to
exceed the counties within which a border of the reservation falls;

(3) operate its program in conformity with section 13.46 and any applicable federal
regulations in the use of data about MFIP new text begin and DWP new text end recipients;

(4) coordinate operation of its program with the county agency, Workforce
Investment Act programs, and other support services or employment-related programs in
the counties in which the tribal unit's program operates;

(5) provide financial and program participant activity record keeping and reporting
in the manner and using the forms and procedures specified by the commissioner and
permit inspection of its program and records by representatives of the state; and

(6) have the Indian tribe's employment service provider certified by the
commissioner of employment and economic development, or approved by the county.

Subd. 3.

Funding.

If the commissioner and an Indian tribe are parties to an
agreement under this subdivision, the agreement shall annually provide to the Indian tribe
the funding allocated in section 256J.626.

Subd. 4.

County agency requirement.

Indian tribal members receiving MFIP new text begin or
DWP new text end benefits and residing in the service area of an Indian tribe operating employment
services under an agreement with the commissioner must be referred by county agencies
in the service area to the Indian tribe for employment services.

Sec. 15.

Minnesota Statutes 2006, section 256J.66, subdivision 1, is amended to read:


Subdivision 1.

Establishing the on-the-job training program.

(a) County agencies
may develop on-the-job training programs for MFIP caregivers who are participating in
employment and training services. A county agency that chooses to provide on-the-job
training may make payments to employers for on-the-job training costs that, during the
period of the training, must not exceed 50 percent of the wages paid by the employer to
the participant. The payments are deemed to be in compensation for the extraordinary
costs associated with training participants under this section and in compensation for the
costs associated with the lower productivity of the participants during training.

(b) Provision of an on-the-job training program under the deleted text begin Job Training Partnershipdeleted text end new text begin
1998 Workforce Investmentnew text end Act, in and of itself, does not qualify as an on-the-job training
program under this section.

(c) Participants in on-the-job training shall be compensated by the employer at the
same rates, including periodic increases, as similarly situated employees or trainees and
in accordance with applicable law, but in no event less than the federal or applicable
state minimum wage, whichever is higher.

Sec. 16.

Minnesota Statutes 2006, section 256J.67, subdivision 3, is amended to read:


Subd. 3.

Employment options.

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

(b) Structured, supervised deleted text begin volunteerdeleted text end work with an agency or organization, which is
monitored by the county service provider, may, with the approval of the county agency,
be used as a work experience placement.

(c) As a condition of placing a caregiver in a program under this section, the county
agency shall first provide the caregiver the opportunity:

(1) for placement in suitable subsidized or unsubsidized employment through
participation in a job search; or

(2) for placement in suitable employment through participation in on-the-job
training, if such employment is available.

Sec. 17.

Minnesota Statutes 2006, section 259.67, subdivision 4, is amended to read:


Subd. 4.

Eligibility conditions.

(a) The placing agency shall use the AFDC
requirements as specified in federal law as of July 16, 1996, when determining the child's
eligibility for adoption assistance under title IV-E of the Social Security Act. If the child
does not qualify, the placing agency shall certify a child as eligible for state funded
adoption assistance only if the following criteria are met:

(1) Due to the child's characteristics or circumstances it would be difficult to provide
the child an adoptive home without adoption assistance.

(2)(i) A placement agency has made reasonable efforts to place the child for adoption
without adoption assistance, but has been unsuccessful; or

(ii) the child's licensed foster parents desire to adopt the child and it is determined by
the placing agency that the adoption is in the best interest of the child.

(3)new text begin (i)new text end The child has been a ward of the commissioner, a Minnesota-licensed
child-placing agency, or a tribal social service agency of Minnesota recognized by the
Secretary of the Interiordeleted text begin .deleted text end new text begin ; or (ii) the child will be adopted according to tribal law without a
termination of parental rights or relinquishment, provided that the tribe has documented
the valid reason why the child cannot or should not be returned to the home of the child's
parent. new text end The placing agency shall not certify a child who remains under the jurisdiction
of the sending agency pursuant to section 260.851, article 5, for state-funded adoption
assistance when Minnesota is the receiving state.

(b) For purposes of this subdivision, the characteristics or circumstances that may
be considered in determining whether a child is a child with special needs under United
States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of
paragraph (a), clause (1), are the following:

(1) The child is a member of a sibling group to be placed as one unit in which at
least one sibling is older than 15 months of age or is described in clause (2) or (3).

(2) The child has documented physical, mental, emotional, or behavioral disabilities.

(3) The child has a high risk of developing physical, mental, emotional, or behavioral
disabilities.

deleted text begin (4) The child is adopted according to tribal law without a termination of parental
rights or relinquishment, provided that the tribe has documented the valid reason why the
child cannot or should not be returned to the home of the child's parent.
 deleted text end

(c) When a child's eligibility for adoption assistance is based upon the high risk of
developing physical, mental, emotional, or behavioral disabilities, payments shall not be
made under the adoption assistance agreement unless and until the potential disability
manifests itself as documented by an appropriate health care professional.

Sec. 18.

Minnesota Statutes 2006, section 260.012, is amended to read:


260.012 DUTY TO ENSURE PLACEMENT PREVENTION AND FAMILY
REUNIFICATION; REASONABLE EFFORTS.

(a) Once a child alleged to be in need of protection or services is under the court's
jurisdiction, the court shall ensure that reasonable efforts, including culturally appropriate
services, by the social services agency are made to prevent placement or to eliminate the
need for removal and to reunite the child with the child's family at the earliest possible
time, and deleted text begin when a child cannot be reunified with the parent or guardian from whom the
child was removed,deleted text end the court must ensure that the responsible social services agency
makes reasonable efforts to finalize an alternative permanent plan for the child as provided
in paragraph (e). In determining reasonable efforts to be made with respect to a child and
in making those reasonable efforts, the child's best interests, health, and safety must be of
paramount concern. Reasonable efforts to prevent placement and for rehabilitation and
reunification are always required except upon a determination by the court that a petition
has been filed stating a prima facie case that:

(1) the parent has subjected a child to egregious harm as defined in section
260C.007, subdivision 14;

(2) the parental rights of the parent to another child have been terminated
involuntarily;

(3) the child is an abandoned infant under section 260C.301, subdivision 2,
paragraph (a), clause (2);

(4) the parent's custodial rights to another child have been involuntarily transferred
to a relative under section 260C.201, subdivision 11, paragraph (e), clause (1), or a similar
law of another jurisdiction; or

(5) the provision of services or further services for the purpose of reunification is
futile and therefore unreasonable under the circumstances.

(b) When the court makes one of the prima facie determinations under paragraph (a),
either permanency pleadings under section 260C.201, subdivision 11, or a termination
of parental rights petition under sections 260C.141 and 260C.301 must be filed. A
permanency hearing under section 260C.201, subdivision 11, must be held within 30
days of this determination.

(c) In the case of an Indian child, in proceedings under sections 260B.178 or
260C.178, 260C.201, and 260C.301 the juvenile court must make findings and conclusions
consistent with the Indian Child Welfare Act of 1978, United States Code, title 25, section
1901 et seq., as to the provision of active efforts. In cases governed by the Indian Child
Welfare Act of 1978, United States Code, title 25, section 1901, the responsible social
services agency must provide active efforts as required under United States Code, title
25, section 1911(d).

(d) "Reasonable efforts to prevent placement" means:

(1) the agency has made reasonable efforts to prevent the placement of the child in
foster care; or

(2) given the particular circumstances of the child and family at the time of the
child's removal, there are no services or efforts available which could allow the child to
safely remain in the home.

(e) "Reasonable efforts to finalize a permanent plan for the child" means due
diligence by the responsible social services agency to:

(1) reunify the child with the parent or guardian from whom the child was removed;

(2) assess a noncustodial parent's ability to provide day-to-day care for the child and,
where appropriate, provide services necessary to enable the noncustodial parent to safely
provide the care, as required by section 260C.212, subdivision 4;

(3) conduct a relative search as required under section 260C.212, subdivision 5; and

(4) when the child cannot return to the parent or guardian from whom the child was
removed, to plan for and finalize a safe and legally permanent alternative home for the
child, preferably through adoption or transfer of permanent legal and physical custody of
the child.

(f) Reasonable efforts are made upon the exercise of due diligence by the responsible
social services agency to use culturally appropriate and available services to meet the
needs of the child and the child's family. Services may include those provided by the
responsible social services agency and other culturally appropriate services available in
the community. At each stage of the proceedings where the court is required to review
the appropriateness of the responsible social services agency's reasonable efforts as
described in paragraphs (a), (d), and (e), the social services agency has the burden of
demonstrating that:

(1) it has made reasonable efforts to prevent placement of the child in foster care;

(2) it has made reasonable efforts to eliminate the need for removal of the child from
the child's home and to reunify the child with the child's family at the earliest possible time;

(3) it has made reasonable efforts to finalize an alternative permanent home for the
child; or

(4) reasonable efforts to prevent placement and to reunify the child with the parent
or guardian are not required. The agency may meet this burden by stating facts in a sworn
petition filed under section 260C.141, by filing an affidavit summarizing the agency's
reasonable efforts or facts the agency believes demonstrate there is no need for reasonable
efforts to reunify the parent and child, or through testimony or a certified report required
under juvenile court rules.

(g) Once the court determines that reasonable efforts for reunification are not
required because the court has made one of the prima facie determinations under paragraph
(a), the court may only require reasonable efforts for reunification after a hearing according
to section 260C.163, where the court finds there is not clear and convincing evidence of
the facts upon which the court based its prima facie determination. In this case when there
is clear and convincing evidence that the child is in need of protection or services, the
court may find the child in need of protection or services and order any of the dispositions
available under section 260C.201, subdivision 1. Reunification of a surviving child with a
parent is not required if the parent has been convicted of:

(1) a violation of, or an attempt or conspiracy to commit a violation of, sections
609.185 to 609.20; 609.222, subdivision 2; or 609.223 in regard to another child of the
parent;

(2) a violation of section 609.222, subdivision 2; or 609.223, in regard to the
surviving child; or

(3) a violation of, or an attempt or conspiracy to commit a violation of, United States
Code, title 18, section 1111(a) or 1112(a), in regard to another child of the parent.

(h) The juvenile court, in proceedings under sections 260B.178 or 260C.178,
260C.201, and 260C.301 shall make findings and conclusions as to the provision of
reasonable efforts. When determining whether reasonable efforts have been made, the
court shall consider whether services to the child and family were:

(1) relevant to the safety and protection of the child;

(2) adequate to meet the needs of the child and family;

(3) culturally appropriate;

(4) available and accessible;

(5) consistent and timely; and

(6) realistic under the circumstances.

In the alternative, the court may determine that provision of services or further
services for the purpose of rehabilitation is futile and therefore unreasonable under the
circumstances or that reasonable efforts are not required as provided in paragraph (a).

(i) This section does not prevent out-of-home placement for treatment of a child with
a mental disability when the child's diagnostic assessment or individual treatment plan
indicates that appropriate and necessary treatment cannot be effectively provided outside
of a residential or inpatient treatment program.

(j) If continuation of reasonable efforts to prevent placement or reunify the child
with the parent or guardian from whom the child was removed is determined by the court
to be inconsistent with the permanent plan for the child or upon the court making one of
the prima facie determinations under paragraph (a), reasonable efforts must be made to
place the child in a timely manner in a safe and permanent home and to complete whatever
steps are necessary to legally finalize the permanent placement of the child.

(k) Reasonable efforts to place a child for adoption or in another permanent
placement may be made concurrently with reasonable efforts to prevent placement or to
reunify the child with the parent or guardian from whom the child was removed. When
the responsible social services agency decides to concurrently make reasonable efforts for
both reunification and permanent placement away from the parent under paragraph (a), the
agency shall disclose its decision and both plans for concurrent reasonable efforts to all
parties and the court. When the agency discloses its decision to proceed on both plans for
reunification and permanent placement away from the parent, the court's review of the
agency's reasonable efforts shall include the agency's efforts under both plans.

Sec. 19.

Minnesota Statutes 2006, section 260B.157, subdivision 1, is amended to read:


Subdivision 1.

Investigation.

Upon request of the court the local social services
agency or probation officer shall investigate the personal and family history and
environment of any minor coming within the jurisdiction of the court under section
260B.101 and shall report its findings to the court. The court may order any minor coming
within its jurisdiction to be examined by a duly qualified physician, psychiatrist, or
psychologist appointed by the court.

The court shall deleted text begin havedeleted text end new text begin ordernew text end a chemical use assessment conducted when a child is
(1) found to be delinquent for violating a provision of chapter 152, or for committing a
felony-level violation of a provision of chapter 609 if the probation officer determines
that alcohol or drug use was a contributing factor in the commission of the offense, or
(2) alleged to be delinquent for violating a provision of chapter 152, if the child is being
held in custody under a detention order. The assessor's qualifications and the assessment
criteria shall comply with Minnesota Rules, parts 9530.6600 to 9530.6655. If funds under
chapter 254B are to be used to pay for the recommended treatment, the assessment and
placement must comply with all provisions of Minnesota Rules, parts 9530.6600 to
9530.6655 and 9530.7000 to 9530.7030. The commissioner of human services shall
reimburse the court for the cost of the chemical use assessment, up to a maximum of $100.

The court shall deleted text begin havedeleted text end new text begin ordernew text end a children's mental health screening conducted when
a child is found to be delinquent. The screening shall be conducted with a screening
instrument approved by the commissioner of human services and shall be conducted by a
mental health practitioner as defined in section 245.4871, subdivision 26, or a probation
officer who is trained in the use of the screening instrument. If the screening indicates
a need for assessment, the local social services agency, in consultation with the child's
family, shall have a diagnostic assessment conducted, including a functional assessment,
as defined in section 245.4871.

With the consent of the commissioner of corrections and agreement of the county to
pay the costs thereof, the court may, by order, place a minor coming within its jurisdiction
in an institution maintained by the commissioner for the detention, diagnosis, custody and
treatment of persons adjudicated to be delinquent, in order that the condition of the minor
be given due consideration in the disposition of the case. Any funds received under the
provisions of this subdivision shall not cancel until the end of the fiscal year immediately
following the fiscal year in which the funds were received. The funds are available for
use by the commissioner of corrections during that period and are hereby appropriated
annually to the commissioner of corrections as reimbursement of the costs of providing
these services to the juvenile courts.

Sec. 20.

Minnesota Statutes 2006, section 626.556, subdivision 2, is amended to read:


Subd. 2.

Definitions.

As used in this section, the following terms have the meanings
given them unless the specific content indicates otherwise:

(a) "Family assessment" means a comprehensive assessment of child safety, risk
of subsequent child maltreatment, and family strengths and needs that is applied to a
child maltreatment report that does not allege substantial child endangerment. Family
assessment does not include a determination as to whether child maltreatment occurred
but does determine the need for services to address the safety of family members and the
risk of subsequent maltreatment.

(b) "Investigation" means fact gathering related to the current safety of a child
and the risk of subsequent maltreatment that determines whether child maltreatment
occurred and whether child protective services are needed. An investigation must be used
when reports involve substantial child endangerment, and for reports of maltreatment in
facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to
144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and
13, and 124D.10; or in a nonlicensed personal care provider association as defined in
sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.

(c) "Substantial child endangerment" means a person responsible for a child's care,new text begin
and in the case of sexual abuse also includesnew text end a person who has a significant relationship to
the child as defined in section 609.341, or a person in a position of authority as defined in
section 609.341, who by act or omission commits or attempts to commit an act against a
child under their care that constitutes any of the following:

(1) egregious harm as defined in section 260C.007, subdivision 14;

(2) sexual abuse as defined in paragraph (d);

(3) abandonment under section 260C.301, subdivision 2;

(4) neglect as defined in paragraph (f), clause (2), that substantially endangers the
child's physical or mental health, including a growth delay, which may be referred to as
failure to thrive, that has been diagnosed by a physician and is due to parental neglect;

(5) murder in the first, second, or third degree under section 609.185, 609.19, or
609.195;

(6) manslaughter in the first or second degree under section 609.20 or 609.205;

(7) assault in the first, second, or third degree under section 609.221, 609.222, or
609.223;

(8) solicitation, inducement, and promotion of prostitution under section 609.322;

(9) criminal sexual conduct under sections 609.342 to 609.3451;

(10) solicitation of children to engage in sexual conduct under section 609.352;

(11) malicious punishment or neglect or endangerment of a child under section
609.377 or 609.378;

(12) use of a minor in sexual performance under section 617.246; or

(13) parental behavior, status, or condition which mandates that the county attorney
file a termination of parental rights petition under section 260C.301, subdivision 3,
paragraph (a).

(d) "Sexual abuse" means the subjection of a child by a person responsible for the
child's care, by a person who has a significant relationship to the child, as defined in
section 609.341, or by a person in a position of authority, as defined in section 609.341,
subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual
conduct in the first degree), 609.343 (criminal sexual conduct in the second degree),
609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct
in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual
abuse also includes any act which involves a minor which constitutes a violation of
prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes
threatened sexual abuse.

(e) "Person responsible for the child's care" means (1) an individual functioning
within the family unit and having responsibilities for the care of the child such as a
parent, guardian, or other person having similar care responsibilities, or (2) an individual
functioning outside the family unit and having responsibilities for the care of the child
such as a teacher, school administrator, other school employees or agents, or other lawful
custodian of a child having either full-time or short-term care responsibilities including,
but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching,
and coaching.

(f) "Neglect" means:

(1) failure by a person responsible for a child's care to supply a child with necessary
food, clothing, shelter, health, medical, or other care required for the child's physical or
mental health when reasonably able to do so;

(2) failure to protect a child from conditions or actions that seriously endanger the
child's physical or mental health when reasonably able to do so, including a growth delay,
which may be referred to as a failure to thrive, that has been diagnosed by a physician and
is due to parental neglect;

(3) failure to provide for necessary supervision or child care arrangements
appropriate for a child after considering factors as the child's age, mental ability, physical
condition, length of absence, or environment, when the child is unable to care for the
child's own basic needs or safety, or the basic needs or safety of another child in their care;

(4) failure to ensure that the child is educated as defined in sections 120A.22 and
260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's
child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;

(5) nothing in this section shall be construed to mean that a child is neglected solely
because the child's parent, guardian, or other person responsible for the child's care in
good faith selects and depends upon spiritual means or prayer for treatment or care of
disease or remedial care of the child in lieu of medical care; except that a parent, guardian,
or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report
if a lack of medical care may cause serious danger to the child's health. This section does
not impose upon persons, not otherwise legally responsible for providing a child with
necessary food, clothing, shelter, education, or medical care, a duty to provide that care;

(6) prenatal exposure to a controlled substance, as defined in section 253B.02,
subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal
symptoms in the child at birth, results of a toxicology test performed on the mother at
delivery or the child at birth, or medical effects or developmental delays during the child's
first year of life that medically indicate prenatal exposure to a controlled substance;

(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);

(8) chronic and severe use of alcohol or a controlled substance by a parent or
person responsible for the care of the child that adversely affects the child's basic needs
and safety; or

(9) emotional harm from a pattern of behavior which contributes to impaired
emotional functioning of the child which may be demonstrated by a substantial and
observable effect in the child's behavior, emotional response, or cognition that is not
within the normal range for the child's age and stage of development, with due regard to
the child's culture.

(g) "Physical abuse" means any physical injury, mental injury, or threatened injury,
inflicted by a person responsible for the child's care on a child other than by accidental
means, or any physical or mental injury that cannot reasonably be explained by the child's
history of injuries, or any aversive or deprivation procedures, or regulated interventions,
that have not been authorized under section 121A.67 or 245.825. Abuse does not include
reasonable and moderate physical discipline of a child administered by a parent or legal
guardian which does not result in an injury. Abuse does not include the use of reasonable
force by a teacher, principal, or school employee as allowed by section 121A.582. Actions
which are not reasonable and moderate include, but are not limited to, any of the following
that are done in anger or without regard to the safety of the child:

(1) throwing, kicking, burning, biting, or cutting a child;

(2) striking a child with a closed fist;

(3) shaking a child under age three;

(4) striking or other actions which result in any nonaccidental injury to a child
under 18 months of age;

(5) unreasonable interference with a child's breathing;

(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;

(7) striking a child under age one on the face or head;

(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled
substances which were not prescribed for the child by a practitioner, in order to control or
punish the child; or other substances that substantially affect the child's behavior, motor
coordination, or judgment or that results in sickness or internal injury, or subjects the
child to medical procedures that would be unnecessary if the child were not exposed
to the substances;

(9) unreasonable physical confinement or restraint not permitted under section
609.379, including but not limited to tying, caging, or chaining; or

(10) in a school facility or school zone, an act by a person responsible for the child's
care that is a violation under section 121A.58.

(h) "Report" means any report received by the local welfare agency, police
department, county sheriff, or agency responsible for assessing or investigating
maltreatment pursuant to this section.

(i) "Facility" means:

(1) a licensed or unlicensed day care facility, residential facility, agency, hospital,
sanitarium, or other facility or institution required to be licensed under sections 144.50 to
144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B;

(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and
124D.10; or

(3) a nonlicensed personal care provider organization as defined in sections 256B.04,
subdivision 16, and 256B.0625, subdivision 19a.

(j) "Operator" means an operator or agency as defined in section 245A.02.

(k) "Commissioner" means the commissioner of human services.

(l) "Practice of social services," for the purposes of subdivision 3, includes but is
not limited to employee assistance counseling and the provision of guardian ad litem and
parenting time expeditor services.

(m) "Mental injury" means an injury to the psychological capacity or emotional
stability of a child as evidenced by an observable or substantial impairment in the child's
ability to function within a normal range of performance and behavior with due regard to
the child's culture.

(n) "Threatened injury" means a statement, overt act, condition, or status that
represents a substantial risk of physical or sexual abuse or mental injury. Threatened
injury includes, but is not limited to, exposing a child to a person responsible for the
child's care, as defined in paragraph (e), clause (1), who has:

(1) subjected a child to, or failed to protect a child from, an overt act or condition
that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a
similar law of another jurisdiction;

(2) been found to be palpably unfit under section 260C.301, paragraph (b), clause
(4), or a similar law of another jurisdiction;

(3) committed an act that has resulted in an involuntary termination of parental rights
under section 260C.301, or a similar law of another jurisdiction; or

(4) committed an act that has resulted in the involuntary transfer of permanent legal
and physical custody of a child to a relative under section 260C.201, subdivision 11,
paragraph (d), clause (1), or a similar law of another jurisdiction.

(o) Persons who conduct assessments or investigations under this section shall take
into account accepted child-rearing practices of the culture in which a child participates
and accepted teacher discipline practices, which are not injurious to the child's health,
welfare, and safety.

Sec. 21.

Minnesota Statutes 2006, section 626.556, subdivision 3, is amended to read:


Subd. 3.

Persons mandated to report.

(a) A person who knows or has reason
to believe a child is being neglected or physically or sexually abused, as defined in
subdivision 2, or has been neglected or physically or sexually abused within the preceding
three years, shall immediately report the information to the local welfare agency, agency
responsible for assessing or investigating the report, police department, or the county
sheriff if the person is:

(1) a professional or professional's delegate who is engaged in the practice of
the healing arts, social services, hospital administration, psychological or psychiatric
treatment, child care, education, correctional supervision, probation and correctional
services, or law enforcement; or

(2) employed as a member of the clergy and received the information while
engaged in ministerial duties, provided that a member of the clergy is not required by
this subdivision to report information that is otherwise privileged under section 595.02,
subdivision 1, paragraph (c).

The police department or the county sheriff, upon receiving a report, shall
immediately notify the local welfare agency or agency responsible for assessing or
investigating the report, orally and in writing. The local welfare agency, or agency
responsible for assessing or investigating the report, upon receiving a report, shall
immediately notify the local police department or the county sheriff orally and in writing.
The county sheriff and the head of every local welfare agency, agency responsible
for assessing or investigating reports, and police department shall each designate a
person within their agency, department, or office who is responsible for ensuring that
the notification duties of this paragraph and paragraph (b) are carried out. Nothing in
this subdivision shall be construed to require more than one report from any institution,
facility, school, or agency.

(b) Any person may voluntarily report to the local welfare agency, agency
responsible for assessing or investigating the report, police department, or the county
sheriff if the person knows, has reason to believe, or suspects a child is being or has been
neglected or subjected to physical or sexual abuse. The police department or the county
sheriff, upon receiving a report, shall immediately notify the local welfare agency or
agency responsible for assessing or investigating the report, orally and in writing. The
local welfare agency or agency responsible for assessing or investigating the report, upon
receiving a report, shall immediately notify the local police department or the county
sheriff orally and in writing.

(c) A person mandated to report physical or sexual child abuse or neglect occurring
within a licensed facility shall report the information to the agency responsible for
licensing the facility under sections 144.50 to 144.58; 241.021; 245A.01 to 245A.16; or
chapter 245B; or a nonlicensed personal care provider organization as defined in sections
256B.04, subdivision 16; and 256B.0625, subdivision 19. A health or corrections agency
receiving a report may request the local welfare agency to provide assistance pursuant
to subdivisions 10, 10a, and 10b. A board or other entity whose licensees perform work
within a school facility, upon receiving a complaint of alleged maltreatment, shall provide
information about the circumstances of the alleged maltreatment to the commissioner of
education. Section 13.03, subdivision 4, applies to data received by the commissioner of
education from a licensing entity.

(d) Any person mandated to report shall receive a summary of the disposition of
any report made by that reporter, including whether the case has been opened for child
protection or other services, or if a referral has been made to a community organization,
unless release would be detrimental to the best interests of the child. Any person who is
not mandated to report shall, upon request to the local welfare agency, receive a concise
summary of the disposition of any report made by that reporter, unless release would be
detrimental to the best interests of the child.

(e) For purposes of this deleted text begin subdivisiondeleted text end new text begin sectionnew text end , "immediately" means as soon as
possible but in no event longer than 24 hours.

Sec. 22.

Minnesota Statutes 2006, section 626.556, subdivision 10, is amended to read:


Subd. 10.

Duties of local welfare agency and local law enforcement agency upon
receipt of a report.

(a) Upon receipt of a report, the local welfare agency shall determine
whether to conduct a family assessment or an investigation as appropriate to prevent or
provide a remedy for child maltreatment. The local welfare agency:

(1) shall conduct an investigation on reports involving substantial child
endangerment;

(2) shall begin an immediate investigation if, at any time when it is using a family
assessment response, it determines that there is reason to believe that substantial child
endangerment or a serious threat to the child's safety exists;

(3) may conduct a family assessment for reports that do not allege substantial child
endangerment. In determining that a family assessment is appropriate, the local welfare
agency may consider issues of child safety, parental cooperation, and the need for an
immediate response; and

(4) may conduct a family assessment on a report that was initially screened and
assigned for an investigation. In determining that a complete investigation is not required,
the local welfare agency must document the reason for terminating the investigation and
notify the local law enforcement agency if the local law enforcement agency is conducting
a joint investigation.

If the report alleges neglect, physical abuse, or sexual abuse by a parent, guardian, or
individual functioning within the family unit as a person responsible for the child's care,
the local welfare agency shall immediately conduct a family assessment or investigation
as identified in clauses (1) to (4). In conducting a family assessment or investigation, the
local welfare agency shall gather information on the existence of substance abuse and
domestic violence and offer services for purposes of preventing future child maltreatment,
safeguarding and enhancing the welfare of the abused or neglected minor, and supporting
and preserving family life whenever possible. If the report alleges a violation of a
criminal statute involving sexual abuse, physical abuse, or neglect or endangerment,
under section 609.378, the local law enforcement agency and local welfare agency shall
coordinate the planning and execution of their respective investigation and assessment
efforts to avoid a duplication of fact-finding efforts and multiple interviews. Each agency
shall prepare a separate report of the results of its investigation. In cases of alleged child
maltreatment resulting in death, the local agency may rely on the fact-finding efforts of a
law enforcement investigation to make a determination of whether or not maltreatment
occurred. When necessary the local welfare agency shall seek authority to remove the
child from the custody of a parent, guardian, or adult with whom the child is living. In
performing any of these duties, the local welfare agency shall maintain appropriate records.

If the family assessment or investigation indicates there is a potential for abuse of
alcohol or other drugs by the parent, guardian, or person responsible for the child's care,
the local welfare agency shall conduct a chemical use assessment pursuant to Minnesota
Rules, part 9530.6615. The local welfare agency shall report the determination of the
chemical use assessment, and the recommendations and referrals for alcohol and other
drug treatment services to the state authority on alcohol and drug abuse.

(b) When a local agency receives a report or otherwise has information indicating
that a child who is a client, as defined in section 245.91, has been the subject of physical
abuse, sexual abuse, or neglect at an agency, facility, or program as defined in section
245.91, it shall, in addition to its other duties under this section, immediately inform the
ombudsman established under sections 245.91 to 245.97. The commissioner of education
shall inform the ombudsman established under sections 245.91 to 245.97 of reports
regarding a child defined as a client in section 245.91 that maltreatment occurred at a
school as defined in sections 120A.05, subdivisions 9, 11, and 13, and 124D.10.

(c) Authority of the local welfare agency responsible for assessing or investigating
the child abuse or neglect report, the agency responsible for assessing or investigating
the report, and of the local law enforcement agency for investigating the alleged abuse or
neglect includes, but is not limited to, authority to interview, without parental consent,
the alleged victim and any other minors who currently reside with or who have resided
with the alleged offender. The interview may take place at school or at any facility or
other place where the alleged victim or other minors might be found or the child may be
transported to, and the interview conducted at, a place appropriate for the interview of a
child designated by the local welfare agency or law enforcement agency. The interview
may take place outside the presence of the alleged offender or parent, legal custodian,
guardian, or school official. For family assessments, it is the preferred practice to request
a parent or guardian's permission to interview the child prior to conducting the child
interview, unless doing so would compromise the safety assessment. Except as provided in
this paragraph, the parent, legal custodian, or guardian shall be notified by the responsible
local welfare or law enforcement agency no later than the conclusion of the investigation
or assessment that this interview has occurred. Notwithstanding rule of the
Minnesota Rules of Procedure for Juvenile Courts, the juvenile court may, after hearing on
an ex parte motion by the local welfare agency, order that, where reasonable cause exists,
the agency withhold notification of this interview from the parent, legal custodian, or
guardian. If the interview took place or is to take place on school property, the order shall
specify that school officials may not disclose to the parent, legal custodian, or guardian the
contents of the notification of intent to interview the child on school property, as provided
under this paragraph, and any other related information regarding the interview that may
be a part of the child's school record. A copy of the order shall be sent by the local welfare
or law enforcement agency to the appropriate school official.

(d) When the local welfare, local law enforcement agency, or the agency responsible
for assessing or investigating a report of maltreatment determines that an interview should
take place on school property, written notification of intent to interview the child on school
property must be received by school officials prior to the interview. The notification
shall include the name of the child to be interviewed, the purpose of the interview, and
a reference to the statutory authority to conduct an interview on school property. For
interviews conducted by the local welfare agency, the notification shall be signed by the
chair of the local social services agency or the chair's designee. The notification shall be
private data on individuals subject to the provisions of this paragraph. School officials
may not disclose to the parent, legal custodian, or guardian the contents of the notification
or any other related information regarding the interview until notified in writing by the
local welfare or law enforcement agency that the investigation or assessment has been
concluded, unless a school employee or agent is alleged to have maltreated the child.
Until that time, the local welfare or law enforcement agency or the agency responsible
for assessing or investigating a report of maltreatment shall be solely responsible for any
disclosures regarding the nature of the assessment or investigation.

Except where the alleged offender is believed to be a school official or employee,
the time and place, and manner of the interview on school premises shall be within the
discretion of school officials, but the local welfare or law enforcement agency shall have
the exclusive authority to determine who may attend the interview. The conditions as to
time, place, and manner of the interview set by the school officials shall be reasonable and
the interview shall be conducted not more than 24 hours after the receipt of the notification
unless another time is considered necessary by agreement between the school officials and
the local welfare or law enforcement agency. Where the school fails to comply with the
provisions of this paragraph, the juvenile court may order the school to comply. Every
effort must be made to reduce the disruption of the educational program of the child, other
students, or school staff when an interview is conducted on school premises.

(e) Where the alleged offender or a person responsible for the care of the alleged
victim or other minor prevents access to the victim or other minor by the local welfare
agency, the juvenile court may order the parents, legal custodian, or guardian to produce
the alleged victim or other minor for questioning by the local welfare agency or the local
law enforcement agency outside the presence of the alleged offender or any person
responsible for the child's care at reasonable places and times as specified by court order.

(f) Before making an order under paragraph (e), the court shall issue an order to
show cause, either upon its own motion or upon a verified petition, specifying the basis for
the requested interviews and fixing the time and place of the hearing. The order to show
cause shall be served personally and shall be heard in the same manner as provided in
other cases in the juvenile court. The court shall consider the need for appointment of a
guardian ad litem to protect the best interests of the child. If appointed, the guardian ad
litem shall be present at the hearing on the order to show cause.

(g) The commissioner of human services, the ombudsman for mental health and
developmental disabilities, the local welfare agencies responsible for investigating reports,
the commissioner of education, and the local law enforcement agencies have the right to
enter facilities as defined in subdivision 2 and to inspect and copy the facility's records,
including medical records, as part of the investigation. Notwithstanding the provisions of
chapter 13, they also have the right to inform the facility under investigation that they are
conducting an investigation, to disclose to the facility the names of the individuals under
investigation for abusing or neglecting a child, and to provide the facility with a copy of
the report and the investigative findings.

(h) The local welfare agency responsible for conducting a family assessment shall
collect available and relevant information to determine child safety, risk of subsequent
child maltreatment, and family strengths and needs. The local welfare agency or the
agency responsible for investigating the report shall collect available and relevant
information to ascertain whether maltreatment occurred and whether protective services
are needed. Information collected includes, when relevant, information with regard to
the person reporting the alleged maltreatment, including the nature of the reporter's
relationship to the child and to the alleged offender, and the basis of the reporter's
knowledge for the report; the child allegedly being maltreated; the alleged offender; the
child's caretaker; and other collateral sources having relevant information related to the
alleged maltreatment. The local welfare agency or the agency responsible for assessing
or investigating the report may make a determination of no maltreatment early in an
assessment, and close the case and retain immunity, if the collected information shows no
basis for a full assessment or investigation.

Information relevant to the assessment or investigation must be asked for, and
may include:

(1) the child's sex and age, prior reports of maltreatment, information relating
to developmental functioning, credibility of the child's statement, and whether the
information provided under this clause is consistent with other information collected
during the course of the assessment or investigation;

(2) the alleged offender's age, a record check for prior reports of maltreatment, and
criminal charges and convictions. The local welfare agency or the agency responsible for
assessing or investigating the report must provide the alleged offender with an opportunity
to make a statement. The alleged offender may submit supporting documentation relevant
to the assessment or investigation;

(3) collateral source information regarding the alleged maltreatment and care of the
child. Collateral information includes, when relevant: (i) a medical examination of the
child; (ii) prior medical records relating to the alleged maltreatment or the care of the
child maintained by any facility, clinic, or health care professional and an interview with
the treating professionals; and (iii) interviews with the child's caretakers, including the
child's parent, guardian, foster parent, child care provider, teachers, counselors, family
members, relatives, and other persons who may have knowledge regarding the alleged
maltreatment and the care of the child; and

(4) information on the existence of domestic abuse and violence in the home of
the child, and substance abuse.

Nothing in this paragraph precludes the local welfare agency, the local law
enforcement agency, or the agency responsible for assessing or investigating the report
from collecting other relevant information necessary to conduct the assessment or
investigation. Notwithstanding section 13.384 or 144.335, the local welfare agency has
access to medical data and records for purposes of clause (3). Notwithstanding the data's
classification in the possession of any other agency, data acquired by the local welfare
agency or the agency responsible for assessing or investigating the report during the course
of the assessment or investigation are private data on individuals and must be maintained
in accordance with subdivision 11. Data of the commissioner of education collected
or maintained during and for the purpose of an investigation of alleged maltreatment
in a school are governed by this section, notwithstanding the data's classification as
educational, licensing, or personnel data under chapter 13.

In conducting an assessment or investigation involving a school facility as defined
in subdivision 2, paragraph (i), the commissioner of education shall collect investigative
reports and data that are relevant to a report of maltreatment and are from local law
enforcement and the school facility.

(i) Upon receipt of a report, the local welfare agency shall conduct a face-to-face
contact with the child reported to be maltreated and with the child's primary caregiver
sufficient to complete a safety assessment and ensure the immediate safety of the child.
The face-to-face contact with the child and primary caregiver shall occur immediately
if substantial child endangerment is alleged and within five calendar days for all other
reports. If the alleged offender was not already interviewed as the primary caregiver, the
local welfare agency shall also conduct a face-to-face interview with the alleged offender
in the early stages of the assessment or investigation. At the initial contact, the local child
welfare agency or the agency responsible for assessing or investigating the report must
inform the alleged offender of the complaints or allegations made against the individual in
a manner consistent with laws protecting the rights of the person who made the report.
The interview with the alleged offender may be postponed if it would jeopardize an active
law enforcement investigation.

(j) When conducting an investigation, the local welfare agency shall use a question
and answer interviewing format with questioning as nondirective as possible to elicit
spontaneous responses. For investigations only, the following interviewing methods and
procedures must be used whenever possible when collecting information:

(1) audio recordings of all interviews with witnesses and collateral sources; and

(2) in cases of alleged sexual abuse, audio-video recordings of each interview with
the alleged victim and child witnesses.

(k) In conducting an assessment or investigation involving a school facility as
defined in subdivision 2, paragraph (i), the commissioner of education shall collect
available and relevant information and use the procedures in paragraphs (i), (k), and
subdivision 3d, except that the requirement for face-to-face observation of the child
and face-to-face interview of the alleged offender is to occur in the initial stages of the
assessment or investigation provided that the commissioner may also base the assessment
or investigation on investigative reports and data received from the school facility and
local law enforcement, to the extent those investigations satisfy the requirements of
paragraphs (i) and (k), and subdivision 3d.

Sec. 23.

Minnesota Statutes 2006, section 626.556, subdivision 10c, is amended to
read:


Subd. 10c.

Duties of local social service agency upon receipt of a report of
medical neglect.

If the report alleges medical neglect as defined in section 260C.007,
subdivision deleted text begin 4deleted text end new text begin 6new text end , clause (5), the local welfare agency shall, in addition to its other duties
under this section, immediately consult with designated hospital staff and with the parents
of the infant to verify that appropriate nutrition, hydration, and medication are being
provided; and shall immediately secure an independent medical review of the infant's
medical charts and records and, if necessary, seek a court order for an independent medical
examination of the infant. If the review or examination leads to a conclusion of medical
neglect, the agency shall intervene on behalf of the infant by initiating legal proceedings
under section 260C.141 and by filing an expedited motion to prevent the withholding
of medically indicated treatment.

Sec. 24. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall correct all internal references in Minnesota Statutes that
are necessary because of the renumbering of clauses (1) to (29) in section 1.
 new text end

ARTICLE 4

CONTINUING CARE

Section 1.

Minnesota Statutes 2006, section 256.476, subdivision 1, is amended to read:


Subdivision 1.

Purpose and goals.

The commissioner of human services shall
establish a consumer support grant program for individuals with functional limitations and
their families who wish to purchase and secure their own supports. deleted text begin The commissioner and
local agencies shall jointly develop an implementation plan which must include a way to
resolve the issues related to county liability.deleted text end The program shall:

(1) make support grants available to individuals or families as an effective alternative
to the deleted text begin developmental disabilitydeleted text end family support program, personal care attendant services,
home health aide services, and private duty nursing services;

(2) provide consumers more control, flexibility, and responsibility over their services
and supports;

(3) promote local program management and decision making; and

(4) encourage the use of informal and typical community supports.

Sec. 2.

Minnesota Statutes 2006, section 256.476, subdivision 2, is amended to read:


Subd. 2.

Definitions.

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

(a) "County board" means the county board of commissioners for the county of
financial responsibility as defined in section 256G.02, subdivision 4, or its designated
representative. When a human services board has been established under sections 402.01
to 402.10, it shall be considered the county board for the purposes of this section.

(b) "Family" means the person's birth parents, adoptive parents or stepparents,
siblings or stepsiblings, children or stepchildren, grandparents, grandchildren, niece,
nephew, aunt, uncle, or spouse. For the purposes of this section, a family member is
at least 18 years of age.

(c) "Functional limitations" means the long-term inability to perform an activity or
task in one or more areas of major life activity, including self-care, understanding and use
of language, learning, mobility, self-direction, and capacity for independent living. For the
purpose of this section, the inability to perform an activity or task results from a mental,
emotional, psychological, sensory, or physical disability, condition, or illness.

(d) "Informed choice" means a voluntary decision made by the person deleted text begin ordeleted text end new text begin ,new text end
the person's legal representative, new text begin or other authorized representative new text end after becoming
familiarized with the alternatives to:

(1) select a preferred alternative from a number of feasible alternatives;

(2) select an alternative which may be developed in the future; and

(3) refuse any or all alternatives.

(e) "Local agency" means the local agency authorized by the county board or,
for counties not participating in the consumer grant program by July 1, 2002, the
commissioner, to carry out the provisions of this section.

(f) "Person" or "persons" means a person or persons meeting the eligibility criteria in
subdivision 3.

(g) "Authorized representative" means an individual designated by the person or
their legal representative to act on their behalf. This individual may be a family member,
guardian, representative payee, or other individual designated by the person or their legal
representative, if any, to assist in purchasing and arranging for supports. For the purposes
of this section, an authorized representative is at least 18 years of age.

(h) "Screening" means the screening of a person's service needs under sections
256B.0911 and 256B.092.

(i) "Supports" means services, care, aids, environmental modifications, or assistance
purchased by the person deleted text begin or the person's familydeleted text end new text begin , the person's legal representative, or other
authorized representativenew text end . Examples of supports include respite care, assistance with daily
living, and assistive technology. For the purpose of this section, notwithstanding the
provisions of section 144A.43, supports purchased under the consumer support program
are not considered home care services.

(j) "Program of origination" means the program the individual transferred from
when approved for the consumer support grant program.

Sec. 3.

Minnesota Statutes 2006, section 256.476, subdivision 3, is amended to read:


Subd. 3.

Eligibility to apply for grants.

(a) A person is eligible to apply for a
consumer support grant if the person meets all of the following criteria:

(1) the person is eligible for and has been approved to receive services under
medical assistance as determined under sections 256B.055 and 256B.056 or the person
has been approved to receive a grant under the deleted text begin developmental disabilitydeleted text end family support
program under section 252.32;

(2) the person is able to direct and purchase the person's own care and supports, or
the person has a family member, legal representative, or other authorized representative
who can purchase and arrange supports on the person's behalf;

(3) the person has functional limitations, requires ongoing supports to live in the
community, and is at risk of or would continue institutionalization without such supports;
and

(4) the person will live in a home. For the purpose of this section, "home" means the
person's own home or home of a person's family member. These homes are natural home
settings and are not licensed by the Department of Health or Human Services.

(b) Persons may not concurrently receive a consumer support grant if they are:

(1) receiving personal care attendant and home health aide services, or private duty
nursing under section 256B.0625; a deleted text begin developmental disabilitydeleted text end family support grant; or
alternative care services under section 256B.0913; or

(2) residing in an institutional or congregate care setting.

(c) A person or person's family receiving a consumer support grant shall not be
charged a fee or premium by a local agency for participating in the program.

(d) Individuals receiving home and community-based waivers under United States
Code, title 42, section 1396h(c), are not eligible for the consumer support grant, except
for individuals receiving consumer support grants before July 1, 2003, as long as other
eligibility criteria are met.

(e) The commissioner shall establish a budgeted appropriation each fiscal year
for the consumer support grant program. The number of individuals participating in
the program will be adjusted so the total amount allocated to counties does not exceed
the amount of the budgeted appropriation. The budgeted appropriation will be adjusted
annually to accommodate changes in demand for the consumer support grants.

Sec. 4.

Minnesota Statutes 2006, section 256.476, subdivision 4, is amended to read:


Subd. 4.

Support grants; criteria and limitations.

(a) A county board may
choose to participate in the consumer support grant program. If a county has not chosen
to participate by July 1, 2002, the commissioner shall contract with another county or
other entity to provide access to residents of the nonparticipating county who choose
the consumer support grant option. The commissioner shall notify the county board
in a county that has declined to participate of the commissioner's intent to enter into
a contract with another county or other entity at least 30 days in advance of entering
into the contract. The local agency shall establish written procedures and criteria to
determine the amount and use of support grants. These procedures must include, at least,
the availability of respite care, assistance with daily living, and adaptive aids. The local
agency may establish monthly or annual maximum amounts for grants and procedures
where exceptional resources may be required to meet the health and safety needs of the
person on a time-limited basis, however, the total amount awarded to each individual may
not exceed the limits established in subdivision 11.

(b) Support grants to a person deleted text begin or a person's familydeleted text end new text begin , a person's legal representative,
or other authorized representativenew text end will be provided through a monthly subsidy payment
and be in the form of cash, voucher, or direct county payment to vendor. Support grant
amounts must be determined by the local agency. Each service and item purchased with a
support grant must meet all of the following criteria:

(1) it must be over and above the normal cost of caring for the person if the person
did not have functional limitations;

(2) it must be directly attributable to the person's functional limitations;

(3) it must enable the person deleted text begin or the person's familydeleted text end new text begin , a person's legal representative,
or other authorized representativenew text end to delay or prevent out-of-home placement of the
person; and

(4) it must be consistent with the needs identified in the service agreement, when
applicable.

(c) Items and services purchased with support grants must be those for which there
are no other public or private funds available to the person deleted text begin or the person's familydeleted text end new text begin , a person's
legal representative, or other authorized representativenew text end . Fees assessed to the person or the
person's family for health and human services are not reimbursable through the grant.

(d) In approving or denying applications, the local agency shall consider the
following factors:

(1) the extent and areas of the person's functional limitations;

(2) the degree of need in the home environment for additional support; and

(3) the potential effectiveness of the grant to maintain and support the person in the
family environment or the person's own home.

(e) At the time of application to the program or screening for other services,
the person deleted text begin or the person's familydeleted text end new text begin , a person's legal representative, or other authorized
representativenew text end shall be provided sufficient information to ensure an informed choice
of alternatives by the person, the person's legal representative,new text begin or other authorized
representative,new text end if anydeleted text begin , or the person's familydeleted text end . The application shall be made to the local
agency and shall specify the needs of the person and family, the form and amount of
grant requested, the items and services to be reimbursed, and evidence of eligibility for
medical assistance.

(f) Upon approval of an application by the local agency and agreement on a support
plan for the person or person's family, the local agency shall make grants to the person or
the person's family. The grant shall be in an amount for the direct costs of the services or
supports outlined in the service agreement.

(g) Reimbursable costs shall not include costs for resources already available, such as
special education classes, day training and habilitation, case management, other services to
which the person is entitled, medical costs covered by insurance or other health programs,
or other resources usually available at no cost to the person or the person's family.

(h) The state of Minnesota, the county boards participating in the consumer
support grant program, or the agencies acting on behalf of the county boards in the
implementation and administration of the consumer support grant program shall not be
liable for damages, injuries, or liabilities sustained through the purchase of support by
the individual, the individual's family, or the authorized representative under this section
with funds received through the consumer support grant program. Liabilities include but
are not limited to: workers' compensation liability, the Federal Insurance Contributions
Act (FICA), or the Federal Unemployment Tax Act (FUTA). For purposes of this section,
participating county boards and agencies acting on behalf of county boards are exempt
from the provisions of section 268.04.

Sec. 5.

Minnesota Statutes 2006, section 256.476, subdivision 5, is amended to read:


Subd. 5.

Reimbursement, allocations, and reporting.

(a) For the purpose of
transferring persons to the consumer support grant program from the deleted text begin developmental
disabilitydeleted text end family support program and personal care assistant services, home health
aide services, or private duty nursing services, the amount of funds transferred by the
commissioner between the deleted text begin developmental disabilitydeleted text end family support program account, the
medical assistance account, or the consumer support grant account shall be based on each
county's participation in transferring persons to the consumer support grant program
from those programs and services.

(b) At the beginning of each fiscal year, county allocations for consumer support
grants shall be based on:

(1) the number of persons to whom the county board expects to provide consumer
supports grants;

(2) their eligibility for current program and services;

(3) the amount of nonfederal dollars allowed under subdivision 11; and

(4) projected dates when persons will start receiving grants. County allocations shall
be adjusted periodically by the commissioner based on the actual transfer of persons or
service openings, and the nonfederal dollars associated with those persons or service
openings, to the consumer support grant program.

(c) The amount of funds transferred by the commissioner from the medical
assistance account for an individual may be changed if it is determined by the county or its
agent that the individual's need for support has changed.

(d) The authority to utilize funds transferred to the consumer support grant account
for the purposes of implementing and administering the consumer support grant program
will not be limited or constrained by the spending authority provided to the program
of origination.

(e) The commissioner may use up to five percent of each county's allocation, as
adjusted, for payments for administrative expenses, to be paid as a proportionate addition
to reported direct service expenditures.

(f) The county allocation for each individual or individual's family cannot exceed
the amount allowed under subdivision 11.

(g) The commissioner may recover, suspend, or withhold payments if the county
board, local agency, or grantee does not comply with the requirements of this section.

(h) Grant funds unexpended by consumers shall return to the state once a year. The
annual return of unexpended grant funds shall occur in the quarter following the end of
the state fiscal year.

Sec. 6.

Minnesota Statutes 2006, section 256.476, subdivision 10, is amended to read:


Subd. 10.

Consumer responsibilities.

Persons receiving grants under this section
shall:

(1) spend the grant money in a manner consistent with their agreement with the
local agency;

(2) notify the local agency of any necessary changes in the grant or the items on
which it is spent;

(3) notify the local agency of any decision made by the person, deleted text begin thedeleted text end new text begin anew text end person's legal
representative, deleted text begin or the person's familydeleted text end new text begin or other authorized representativenew text end that would change
their eligibility for consumer support grants;

(4) arrange and pay for supports; and

(5) inform the local agency of areas where they have experienced difficulty securing
or maintaining supports.

Sec. 7.

Minnesota Statutes 2006, section 256.974, is amended to read:


256.974 OFFICE OF OMBUDSMAN FOR deleted text begin OLDER MINNESOTANSdeleted text end new text begin
LONG-TERM CAREnew text end ; LOCAL PROGRAMS.

The ombudsman for deleted text begin older Minnesotansdeleted text end new text begin long-term carenew text end serves in the classified service
under section 256.01, subdivision 7, in an office within the Minnesota Board on Aging that
incorporates the long-term care ombudsman program required by the Older Americans
Act, deleted text begin Public Law 100-75deleted text end new text begin as amendednew text end , United States Code, title 42, section 3027(a)deleted text begin (12)deleted text end new text begin
(9) and 3058g (a)new text end , and established within the Minnesota Board on Aging. The Minnesota
Board on Aging may make grants to and designate local programs for the provision of
ombudsman services to clients in county or multicounty areas. The local program may not
be an agency engaged in the provision of nursing home care, hospital care, or home care
services either directly or by contract, or have the responsibility for planning, coordinating,
funding, or administering nursing home care, hospital care, or home care services.

Sec. 8.

Minnesota Statutes 2006, section 256.9744, subdivision 1, is amended to read:


Subdivision 1.

Classification.

Except as provided in this section, data maintained
by the office under sections 256.974 to 256.9744 are private data on individuals or
nonpublic data as defined in section 13.02, subdivision 9 or 12, and must be maintained
in accordance with the requirements of deleted text begin Public Law 100-75deleted text end new text begin the Older Americans Act, as
amendednew text end , United States Code, title 42, section deleted text begin 3027(a)(12)(D)deleted text end new text begin 3058g(d)new text end .

Sec. 9.

Minnesota Statutes 2006, section 256B.0625, subdivision 23, is amended to
read:


Subd. 23.

Day treatment services.

Medical assistance covers day treatment
services as specified in sections 245.462, subdivision 8, and 245.4871, subdivision 10, that
are provided under contract with the county board. Notwithstanding Minnesota Rules,
part 9505.0323, subpart 15, the commissioner may set authorization thresholds for day
treatment for adults according to section 256B.0625, subdivision 25. new text begin Notwithstanding
Minnesota Rules, part 9505.0323, subpart 15, new text end effective July 1, 2004, medical assistance
covers day treatment services for children as specified under section 256B.0943.

Sec. 10.

Minnesota Statutes 2006, section 256B.0911, subdivision 4c, is amended to
read:


Subd. 4c.

Screening requirements.

(a) A person may be screened for nursing
facility admission by telephone or in a face-to-face screening interview. Consultation team
members shall identify each individual's needs using the following categories:

(1) the person needs no face-to-face screening interview to determine the need
for nursing facility level of care based on information obtained from other health care
professionals;

(2) the person needs an immediate face-to-face screening interview to determine the
need for nursing facility level of care and complete activities required under subdivision
4a; or

(3) the person may be exempt from screening requirements as outlined in subdivision
4b, but will need transitional assistance after admission or in-person follow-along after
a return home.

(b) Persons admitted on a nonemergency basis to a Medicaid-certified nursing
facility must be screened prior to admission.

deleted text begin (c) The long-term care consultation team shall recommend a case mix classification
for persons admitted to a certified nursing facility when sufficient information is received
to make that classification. The nursing facility is authorized to conduct all case mix
assessments for persons who have been screened prior to admission for whom the county
did not recommend a case mix classification. The nursing facility is authorized to conduct
all case mix assessments for persons admitted to the facility prior to a preadmission
screening. The county retains the responsibility of distributing appropriate case mix
forms to the nursing facility.
 deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end The county screening or intake activity must include processes to identify
persons who may require transition assistance as described in subdivision 3b.

Sec. 11.

Minnesota Statutes 2006, section 256B.0913, subdivision 4, is amended to
read:


Subd. 4.

Eligibility for funding for services for nonmedical assistance recipients.

(a) Funding for services under the alternative care program is available to persons who
meet the following criteria:

(1) the person has been determined by a community assessment under section
256B.0911 to be a person who would require the level of care provided in a nursing
facility, but for the provision of services under the alternative care program;

(2) the person is age 65 or older;

(3) the person would be eligible for medical assistance within 135 days of admission
to a nursing facility;

(4) the person is not ineligible for the medical assistance program due to an asset
transfer penalty;

(5) the person needsnew text begin long-term carenew text end services that are not funded through other state
or federal funding;

(6) the monthly cost of the alternative care services funded by the program for
this person does not exceed 75 percent of the monthly limit described under section
256B.0915, subdivision 3a. This monthly limit does not prohibit the alternative care client
from payment for additional services, but in no case may the cost of additional services
purchased under this section exceed the difference between the client's monthly service
limit defined under section 256B.0915, subdivision 3, and the alternative care program
monthly service limit defined in this paragraph. If deleted text begin medicaldeleted text end new text begin care-relatednew text end supplies and
equipment or environmental modificationsnew text begin and adaptationsnew text end are or will be purchased for
an alternative care services recipient, the costs may be prorated on a monthly basis for
up to 12 consecutive months beginning with the month of purchase. If the monthly cost
of a recipient's other alternative care services exceeds the monthly limit established in
this paragraph, the annual cost of the alternative care services shall be determined. In this
event, the annual cost of alternative care services shall not exceed 12 times the monthly
limit described in this paragraph; and

(7) the person is making timely payments of the assessed monthly fee.

A person is ineligible if payment of the fee is over 60 days past due, unless the person
agrees to:

(i) the appointment of a representative payee;

(ii) automatic payment from a financial account;

(iii) the establishment of greater family involvement in the financial management of
payments; or

(iv) another method acceptable to the deleted text begin countydeleted text end new text begin lead agencynew text end to ensure prompt fee
payments.

The deleted text begin county shalldeleted text end new text begin lead agency maynew text end extend the client's eligibility as necessary while
making arrangements to facilitate payment of past-due amounts and future premium
payments. Following disenrollment due to nonpayment of a monthly fee, eligibility shall
not be reinstated for a period of 30 days.

(b) Alternative care funding under this subdivision is not available for a person
who is a medical assistance recipient or who would be eligible for medical assistance
without a spenddown or waiver obligation. A person whose initial application for medical
assistance and the elderly waiver program is being processed may be served under the
alternative care program for a period up to 60 days. If the individual is found to be eligible
for medical assistance, medical assistance must be billed for services payable under the
federally approved elderly waiver plan and delivered from the date the individual was
found eligible for the federally approved elderly waiver plan. Notwithstanding this
provision, alternative care funds may not be used to pay for any service the cost of which:
(i) is payable by medical assistance; (ii) is used by a recipient to meet a waiver obligation;
or (iii) is used to pay a medical assistance income spenddown for a person who is eligible
to participate in the federally approved elderly waiver program under the special income
standard provision.

(c) Alternative care funding is not available for a person who resides in a licensed
nursing home, certified boarding care home, hospital, or intermediate care facility, except
for case management services which are provided in support of the discharge planning
process for a nursing home resident or certified boarding care home resident to assist with
a relocation process to a community-based setting.

(d) Alternative care funding is not available for a person whose income is greater
than the maintenance needs allowance under section 256B.0915, subdivision 1d, but new text begin is
new text end equal to or less than 120 percent of the federal poverty guideline effective July 1 in thenew text begin
fiscalnew text end year for which alternative care eligibility is determined, who would be eligible for
the elderly waiver with a waiver obligation.

Sec. 12.

Minnesota Statutes 2006, section 256B.0913, subdivision 5, is amended to
read:


Subd. 5.

Services covered under alternative care.

Alternative care funding may
be used for payment of costs of:

(1) adult day care;

(2) home health aide;

(3) homemaker services;

(4) personal care;

(5) case management;

(6) respite care;

(7) care-related supplies and equipment;

(8) meals delivered to the home;

(9) new text begin nonmedical new text end transportation;

(10) nursing services;

(11) chore services;

(12) companion services;

(13) nutrition services;

(14) training for direct informal caregivers;

(15) telehome care to provide services in their own homes in conjunction with
in-home visits;

(16) deleted text begin discretionary services, for which counties may make payment from their
alternative care program allocation or services not otherwise defined in this section
or section 256B.0625, following approval by the commissionerdeleted text end new text begin consumer-directed
community services under the alternative care programs which are available statewide and
limited to the average monthly expenditures representative of all alternative care program
participants for the same case mix resident class assigned in the most recent fiscal year for
which complete expenditure data is availablenew text end ;

(17) environmental modificationsnew text begin and adaptationsnew text end ; and

(18) deleted text begin direct cash payments for which counties may make payment from their
alternative care program allocation to clients for the purpose of purchasing services,
following approval by the commissioner, and subject to the provisions of subdivision 5h,
until approval and implementation of consumer-directed services through the federally
approved elderly waiver plan. Upon implementation, consumer-directed services under
the alternative care program are available statewide and limited to the average monthly
expenditures representative of all alternative care program participants for the same case
mix resident class assigned in the most recent fiscal year for which complete expenditure
data is availabledeleted text end new text begin discretionary services, for which lead agencies may make payment from
their alternative care program allocation for services not otherwise defined in this section
or section 256B.0625, following approval by the commissionernew text end .

Total annual payments for discretionary services deleted text begin and direct cash payments, until
the federally approved consumer-directed service option is implemented statewide,deleted text end for
all clients deleted text begin within a county maydeleted text end new text begin served by a lead agency mustnew text end not exceed 25 percent of
that deleted text begin county'sdeleted text end new text begin lead agency'snew text end annual alternative care program base allocation. deleted text begin Thereafter,
discretionary services are limited to 25 percent of the county's annual alternative care
program base allocation.
deleted text end

Sec. 13.

Minnesota Statutes 2006, section 256B.0913, subdivision 5a, is amended to
read:


Subd. 5a.

Services; service definitions; service standards.

(a) Unless specified in
statute, the services, service definitions, and standards for alternative care services shall
be the same as the services, service definitions, and standards specified in the federally
approved elderly waiver plan, except for transitional support services, assisted living
services, adult foster care services, and residential care services.

(b) The deleted text begin countydeleted text end new text begin leadnew text end agency must ensure that the funds are not used to supplant
services available through other public assistance or services programs. For a provider of
supplies and equipment when the monthly cost of the supplies and equipment is less than
$250, persons or agencies must be employed by or under a contract with the deleted text begin countydeleted text end new text begin leadnew text end
agency or the public health nursing agency of the local board of health in order to receive
funding under the alternative care program. Supplies and equipment may be purchased
from a vendor not certified to participate in the Medicaid program if the cost for the
item is less than that of a Medicaid vendor.

(c) Personal care services must meet the service standards defined in the federally
approved elderly waiver plan, except that a deleted text begin countydeleted text end new text begin leadnew text end agency may contract with a
client's relative who meets the relative hardship waiver requirements or a relative who
meets the criteria and is also the responsible party under an individual service plan that
ensures the client's health and safety and supervision of the personal care services by a
qualified professional as defined in section 256B.0625, subdivision 19c. Relative hardship
is established by the deleted text begin countydeleted text end new text begin lead agencynew text end when the client's care causes a relative caregiver
to do any of the following: resign from a paying job, reduce work hours resulting in lost
wages, obtain a leave of absence resulting in lost wages, incur substantial client-related
expenses, provide services to address authorized, unstaffed direct care time, or meet
special needs of the client unmet in the formal service plan.

Sec. 14.

Minnesota Statutes 2006, section 256B.0913, subdivision 8, is amended to
read:


Subd. 8.

Requirements for individual care plan.

(a) The case manager shall
implement the plan of care for each alternative care client and ensure that a client's
service needs and eligibility are reassessed at least every 12 months. The plan shall
include any services prescribed by the individual's attending physician as necessary to
allow the individual to remain in a community setting. In developing the individual's care
plan, the case manager should include the use of volunteers from families and neighbors,
religious organizations, social clubs, and civic and service organizations to support the
formal home care services. The deleted text begin countydeleted text end new text begin lead agencynew text end shall be held harmless for damages or
injuries sustained through the use of volunteers under this subdivision including workers'
compensation liability. The deleted text begin county of servicedeleted text end new text begin case managernew text end shall provide documentation
in each individual's plan of care and, if requested, to the commissioner that the most
cost-effective alternatives available have been offered to the individual and that the
individual was free to choose among available qualified providers, both public and private,
including qualified case management or service coordination providers other than those
employed by any county; however, the county or tribe maintains responsibility for prior
authorizing services in accordance with statutory and administrative requirements. The
case manager must give the individual a ten-day written notice of any denial, termination,
or reduction of alternative care services.

(b) The county of servicenew text begin or tribenew text end must provide access to and arrange for case
management services, including assuring implementation of the plan.new text begin "County of service"
has the meaning given it in Minnesota Rules, part 9505.0015, subpart 11.new text end The county of
service must notify the county of financial responsibility of the approved care plan and
the amount of encumbered funds.

Sec. 15.

Minnesota Statutes 2006, section 256B.0913, subdivision 9, is amended to
read:


Subd. 9.

Contracting provisions for providers.

Alternative care funds paid to
service providers are subject to audit by the commissioner for fiscal and utilization control.

The lead agency must select providers for contracts or agreements using the
following criteria and other criteria established by the deleted text begin countydeleted text end new text begin lead agencynew text end :

(1) the need for the particular services offered by the provider;

(2) the population to be served, including the number of clients, the length of time
services will be provided, and the medical condition of clients;

(3) the geographic area to be served;

(4) quality assurance methods, including appropriate licensure, certification, or
standards, and supervision of employees when needed;

(5) rates for each service and unit of service exclusive of deleted text begin countydeleted text end new text begin lead agencynew text end
administrative costs;

(6) evaluation of services previously delivered by the provider; and

(7) contract or agreement conditions, including billing requirements, cancellation,
and indemnification.

The deleted text begin countydeleted text end new text begin lead agencynew text end must evaluate its own agency services under the criteria
established for other providers.

Sec. 16.

Minnesota Statutes 2006, section 256B.0913, subdivision 10, is amended to
read:


Subd. 10.

Allocation formula.

(a) deleted text begin The alternative care appropriation for fiscal
years 1992 and beyond shall cover only alternative care eligible clients.deleted text end By July deleted text begin 1deleted text end new text begin 15new text end of
each year, the commissioner shall allocate to county agencies the state funds available for
alternative care for persons eligible under subdivision 2.

(b) The adjusted base for each deleted text begin countydeleted text end new text begin lead agencynew text end is the deleted text begin county'sdeleted text end new text begin lead agency'snew text end
current fiscal year base allocation plus any targeted funds approved during the current
fiscal year. Calculations for paragraphs (c) and (d) are to be made as follows: for each
deleted text begin countydeleted text end new text begin lead agencynew text end , the determination of alternative care program expenditures shall be
based on payments for services rendered from April 1 through March 31 in the base year,
to the extent that claims have been submitted and paid by June 1 of that year.

(c) If the alternative care program expenditures as defined in paragraph (b) are 95
percent or more of the deleted text begin county'sdeleted text end new text begin lead agency'snew text end adjusted base allocation, the allocation for
the next fiscal year is 100 percent of the adjusted base, plus inflation to the extent that
inflation is included in the state budget.

(d) If the alternative care program expenditures as defined in paragraph (b) are less
than 95 percent of the deleted text begin county'sdeleted text end new text begin lead agency'snew text end adjusted base allocation, the allocation
for the next fiscal year is the adjusted base allocation less the amount of unspent funds
below the 95 percent level.

(e) If the annual legislative appropriation for the alternative care program is
inadequate to fund the combined deleted text begin countydeleted text end new text begin lead agencynew text end allocations for a biennium, the
commissioner shall distribute to each deleted text begin countydeleted text end new text begin lead agencynew text end the entire annual appropriation
as that deleted text begin county'sdeleted text end new text begin lead agency'snew text end percentage of the computed base as calculated in paragraphs
(c) and (d).

(f) On agreement between the commissioner and the lead agency, the commissioner
may have discretion to reallocate alternative care base allocations distributed to lead
agencies in which the base amount exceeds program expenditures.

Sec. 17.

Minnesota Statutes 2006, section 256B.0913, subdivision 11, is amended to
read:


Subd. 11.

Targeted funding.

(a) The purpose of targeted funding is to make
additional money available to deleted text begin countiesdeleted text end new text begin lead agenciesnew text end with the greatest need. Targeted
funds are not intended to be distributed equitably among all deleted text begin countiesdeleted text end new text begin lead agenciesnew text end , but
rather, allocated to those with long-term care strategies that meet state goals.

(b) The funds available for targeted funding shall be the total appropriation for each
fiscal year minus deleted text begin countydeleted text end new text begin lead agencynew text end allocations determined under subdivision 10 as
adjusted for any inflation increases provided in appropriations for the biennium.

(c) The commissioner shall allocate targeted funds to deleted text begin countiesdeleted text end new text begin lead agenciesnew text end that
demonstrate to the satisfaction of the commissioner that they have developed feasible
plans to increase alternative care spending. In making targeted funding allocations, the
commissioner shall use the following priorities:

(1) deleted text begin countiesdeleted text end new text begin lead agenciesnew text end that received a lower allocation in fiscal year 1991 than in
fiscal year 1990. Counties remain in this priority until they have been restored to their
fiscal year 1990 level plus inflation;

(2) deleted text begin countiesdeleted text end new text begin lead agenciesnew text end that sustain a base allocation reduction for failure to spend
95 percent of the allocation if they demonstrate that the base reduction should be restored;

(3) deleted text begin countiesdeleted text end new text begin lead agenciesnew text end that propose projects to divert community residents from
nursing home placement or convert nursing home residents to community living; and

(4) deleted text begin countiesdeleted text end new text begin lead agenciesnew text end that can otherwise justify program growth by
demonstrating the existence of waiting lists, demographically justified needs, or other
unmet needs.

(d) deleted text begin Countiesdeleted text end new text begin Lead agenciesnew text end that would receive targeted funds according to
paragraph (c) must demonstrate to the commissioner's satisfaction that the funds
would be appropriately spent by showing how the funds would be used to further the
state's alternative care goals as described in subdivision 1, and that the county has the
administrative and service delivery capability to use them.

(e) The commissioner shall deleted text begin request applicationsdeleted text end new text begin make applications availablenew text end for
targeted funds by November 1 of each year. The deleted text begin countiesdeleted text end new text begin lead agenciesnew text end selected for
targeted funds shall be notified of the amount of their additional funding. Targeted funds
allocated to a deleted text begin countydeleted text end new text begin leadnew text end agency in one year shall be treated as part of the deleted text begin county'sdeleted text end new text begin lead
agency'snew text end base allocation for that year in determining allocations for subsequent years. No
reallocations between deleted text begin countiesdeleted text end new text begin lead agenciesnew text end shall be made.

Sec. 18.

Minnesota Statutes 2006, section 256B.0913, subdivision 12, is amended to
read:


Subd. 12.

Client fees.

(a) A fee is required for all alternative care eligible clients
to help pay for the cost of participating in the program. The amount of the fee for the
alternative care client shall be determined as follows:

(1) when the alternative care client's income less recurring and predictable medical
expenses is less than 100 percent of the federal poverty guideline effective on July 1 of
the state fiscal year in which the fee is being computed, and total assets are less than
$10,000, the fee is zero;

(2) when the alternative care client's income less recurring and predictable medical
expenses is equal to or greater than 100 percent but less than 150 percent of the federal
poverty guideline effective on July 1 of the state fiscal year in which the fee is being
computed, and total assets are less than $10,000, the fee is five percent of the cost of
alternative care services;

(3) when the alternative care client's income less recurring and predictable medical
expenses is equal to or greater than 150 percent but less than 200 percent of the federal
poverty guidelines effective on July 1 of the state fiscal year in which the fee is being
computed and assets are less than $10,000, the fee is 15 percent of the cost of alternative
care services;

(4) when the alternative care client's income less recurring and predictable medical
expenses is equal to or greater than 200 percent of the federal poverty guidelines effective
on July 1 of the state fiscal year in which the fee is being computed and assets are less than
$10,000, the fee is 30 percent of the cost of alternative care services; and

(5) when the alternative care client's assets are equal to or greater than $10,000, the
fee is 30 percent of the cost of alternative care services.

For married persons, total assets are defined as the total marital assets less the
estimated community spouse asset allowance, under section 256B.059, if applicable. For
married persons, total income is defined as the client's income less the monthly spousal
allotment, under section 256B.058.

All alternative care services shall be included in the estimated costs for the purpose
of determining the fee.

Fees are due and payable each month alternative care services are received unless the
actual cost of the services is less than the fee, in which case the fee is the lesser amount.

(b) The fee shall be waived by the commissioner when:

(1) a person deleted text begin whodeleted text end is residing in a nursing facility deleted text begin is receiving case management onlydeleted text end ;

(2) a married couple is requesting an asset assessment under the spousal
impoverishment provisions;

(3) a person is found eligible for alternative care, but is not yet receiving alternative
care servicesnew text begin including case management servicesnew text end ; or

(4) a person has chosen to participate in a consumer-directed service plan for which
the cost is no greater than the total cost of the person's alternative care service plan less
the monthly fee amount that would otherwise be assessed.

(c) The deleted text begin county agency must record in the state's receivable system the client's
assessed fee amount or the reason the fee has been waived. Thedeleted text end commissioner will bill
and collect the fee from the client. Money collected must be deposited in the general fund
and is appropriated to the commissioner for the alternative care program. The client must
supply the deleted text begin countydeleted text end new text begin lead agencynew text end with the client's Social Security number at the time of
application. The deleted text begin countydeleted text end new text begin lead agencynew text end shall supply the commissioner with the client's Social
Security number and other information the commissioner requires to collect the fee from
the client. The commissioner shall collect unpaid fees using the Revenue Recapture Act in
chapter 270A and other methods available to the commissioner. The commissioner may
require deleted text begin countiesdeleted text end new text begin lead agenciesnew text end to inform clients of the collection procedures that may be
used by the state if a fee is not paid. This paragraph does not apply to alternative care
pilot projects authorized in Laws 1993, First Special Session chapter 1, article 5, section
133, if a county operating under the pilot project reports the following dollar amounts
to the commissioner quarterly:

(1) total fees billed to clients;

(2) total collections of fees billed; and

(3) balance of fees owed by clients.

If a deleted text begin countydeleted text end new text begin lead agencynew text end does not adhere to these reporting requirements, the commissioner
may terminate the billing, collecting, and remitting portions of the pilot project and require
the deleted text begin countydeleted text end new text begin lead agencynew text end involved to operate under the procedures set forth in this paragraph.

Sec. 19.

Minnesota Statutes 2006, section 256B.0913, subdivision 13, is amended to
read:


Subd. 13.

deleted text begin Countydeleted text end new text begin Lead agencynew text end biennial plan.

The deleted text begin countydeleted text end new text begin lead agencynew text end biennial
plan for long-term care consultation services under section 256B.0911, the alternative
care program under this section, and waivers for the elderly under section 256B.0915,
shall be submitted by the lead agency as the home and community-based services quality
assurance plan on a form provided by the commissioner.

Sec. 20.

Minnesota Statutes 2006, section 256B.0913, subdivision 14, is amended to
read:


Subd. 14.

Provider requirements, payment, and rate adjustments.

(a) Unless
otherwise specified in statute, providers must be enrolled as Minnesota health care
program providers and abide by the requirements for provider participation according to
Minnesota Rules, part 9505.0195.

(b) Payment for provided alternative care services as approved by the client's
case manager shall occur through the invoice processing procedures of the department's
Medicaid Management Information System (MMIS). To receive payment, the deleted text begin countydeleted text end new text begin lead
agencynew text end or vendor must submit invoices within 12 months following the date of service.
The deleted text begin countydeleted text end new text begin leadnew text end agency and its vendors under contract shall not be reimbursed for services
which exceed the county allocation.

(c) The deleted text begin countydeleted text end new text begin lead agencynew text end shall negotiate individual rates with vendors and may
authorize service payment for actual costs up to the county's current approved rate.
Notwithstanding any other rule or statutory provision to the contrary, the commissioner
shall not be authorized to increase rates by an annual inflation factor, unless so authorized
by the legislature. To improve access to community services and eliminate payment
disparities between the alternative care program and the elderly waiver program, the
commissioner shall establish statewide maximum service rate limits and eliminate
county-specific service rate limits.

(1) Effective July 1, 2001, for service rate limits, except those in subdivision 5,
paragraphs (d) and (i), the rate limit for each service shall be the greater of the alternative
care statewide maximum rate or the elderly waiver statewide maximum rate.

(2) deleted text begin Countiesdeleted text end new text begin Lead agenciesnew text end may negotiate individual service rates with vendors for
actual costs up to the statewide maximum service rate limit.

Sec. 21.

Minnesota Statutes 2006, section 256B.0919, subdivision 3, is amended to
read:


Subd. 3.

County certification of persons providing adult foster care to related
persons.

A person exempt from licensure under section 245A.03, subdivision 2, who
provides adult foster care to a related individual age 65 and older, and who meets the
requirements in Minnesota Rules, parts 9555.5105 to 9555.6265, may be certified by the
county to provide adult foster care. A person certified by the county to provide adult foster
care may be reimbursed for services provided and eligible for funding under deleted text begin sections
256B.0913 anddeleted text end new text begin sectionnew text end 256B.0915, if the relative would suffer a financial hardship as
a result of providing care. For purposes of this subdivision, financial hardship refers
to a situation in which a relative incurs a substantial reduction in income as a result of
resigning from a full-time job or taking a leave of absence without pay from a full-time
job to care for the client.

Sec. 22.

Minnesota Statutes 2006, section 256B.431, subdivision 1, is amended to read:


Subdivision 1.

In general.

The commissioner shall determine prospective
payment rates for resident care costs. For rates established on or after July 1, 1985, the
commissioner shall develop procedures for determining operating cost payment rates that
take into account the mix of resident needs, geographic location, and other factors as
determined by the commissioner. The commissioner shall consider whether the fact that a
facility is attached to a hospital or has an average length of stay of 180 days or less should
be taken into account in determining rates. The commissioner shall consider the use of the
standard metropolitan statistical areas when developing groups by geographic location.
The commissioner shall provide notice to each nursing facility on or before deleted text begin May 1deleted text end new text begin August
15new text end of the rates effective for the following rate year except that if legislation is pending on
deleted text begin May 1deleted text end new text begin August 15new text end that may affect rates for nursing facilities, the commissioner shall set the
rates after the legislation is enacted and provide notice to each facility as soon as possible.

Compensation for top management personnel shall continue to be categorized as a
general and administrative cost and is subject to any limits imposed on that cost category.

Sec. 23.

Minnesota Statutes 2006, section 256B.431, subdivision 3f, is amended to
read:


Subd. 3f.

Property costs after July 1, 1988.

(a) Investment per bed limit. For the
rate year beginning July 1, 1988, the replacement-cost-new per bed limit must be $32,571
per licensed bed in multiple bedrooms and $48,857 per licensed bed in a single bedroom.
For the rate year beginning July 1, 1989, the replacement-cost-new per bed limit for a
single bedroom must be $49,907 adjusted according to Minnesota Rules, part 9549.0060,
subpart 4, item A, subitem (1). Beginning January 1, 1990, the replacement-cost-new per
bed limits must be adjusted annually as specified in Minnesota Rules, part 9549.0060,
subpart 4, item A, subitem (1). Beginning January 1, 1991, the replacement-cost-new per
bed limits will be adjusted annually as specified in Minnesota Rules, part 9549.0060,
subpart 4, item A, subitem (1), except that the index utilized will be the Bureau of deleted text begin the
Census: Composite fixed-weighted price index as published in the C30 Report, Value
of New Construction Put in Placedeleted text end new text begin Economic Analysis: Price Indexes for Private Fixed
Investments in Structures; Special Carenew text end .

(b) Rental factor. For the rate year beginning July 1, 1988, the commissioner shall
increase the rental factor as established in Minnesota Rules, part 9549.0060, subpart 8,
item A, by 6.2 percent rounded to the nearest 100th percent for the purpose of reimbursing
nursing facilities for soft costs and entrepreneurial profits not included in the cost valuation
services used by the state's contracted appraisers. For rate years beginning on or after July
1, 1989, the rental factor is the amount determined under this paragraph for the rate year
beginning July 1, 1988.

(c) Occupancy factor. For rate years beginning on or after July 1, 1988, in order
to determine property-related payment rates under Minnesota Rules, part 9549.0060,
for all nursing facilities except those whose average length of stay in a skilled level of
care within a nursing facility is 180 days or less, the commissioner shall use 95 percent
of capacity days. For a nursing facility whose average length of stay in a skilled level of
care within a nursing facility is 180 days or less, the commissioner shall use the greater of
resident days or 80 percent of capacity days but in no event shall the divisor exceed 95
percent of capacity days.

(d) Equipment allowance. For rate years beginning on July 1, 1988, and July 1,
1989, the commissioner shall add ten cents per resident per day to each nursing facility's
property-related payment rate. The ten-cent property-related payment rate increase is not
cumulative from rate year to rate year. For the rate year beginning July 1, 1990, the
commissioner shall increase each nursing facility's equipment allowance as established
in Minnesota Rules, part 9549.0060, subpart 10, by ten cents per resident per day. For
rate years beginning on or after July 1, 1991, the adjusted equipment allowance must be
adjusted annually for inflation as in Minnesota Rules, part 9549.0060, subpart 10, item E.
For the rate period beginning October 1, 1992, the equipment allowance for each nursing
facility shall be increased by 28 percent. For rate years beginning after June 30, 1993, the
allowance must be adjusted annually for inflation.

(e) Post chapter 199 related-organization debts and interest expense. For rate
years beginning on or after July 1, 1990, Minnesota Rules, part 9549.0060, subpart 5, item
E, shall not apply to outstanding related organization debt incurred prior to May 23, 1983,
provided that the debt was an allowable debt under Minnesota Rules, parts 9510.0010
to 9510.0480, the debt is subject to repayment through annual principal payments, and
the nursing facility demonstrates to the commissioner's satisfaction that the interest rate
on the debt was less than market interest rates for similar arm's-length transactions at
the time the debt was incurred. If the debt was incurred due to a sale between family
members, the nursing facility must also demonstrate that the seller no longer participates
in the management or operation of the nursing facility. Debts meeting the conditions of
this paragraph are subject to all other provisions of Minnesota Rules, parts 9549.0010
to 9549.0080.

(f) Building capital allowance for nursing facilities with operating leases. For
rate years beginning on or after July 1, 1990, a nursing facility with operating lease costs
incurred for the nursing facility's buildings shall receive its building capital allowance
computed in accordance with Minnesota Rules, part 9549.0060, subpart 8. If an operating
lease provides that the lessee's rent is adjusted to recognize improvements made by the
lessor and related debt, the costs for capital improvements and related debt shall be allowed
in the computation of the lessee's building capital allowance, provided that reimbursement
for these costs under an operating lease shall not exceed the rate otherwise paid.

Sec. 24.

Minnesota Statutes 2006, section 256B.431, subdivision 17e, is amended to
read:


Subd. 17e.

Replacement-costs-new per bed limit effective July 1, 2001.

Notwithstanding Minnesota Rules, part 9549.0060, subpart 11, item C, subitem (2),
for a total replacement, as defined in deleted text begin paragraph (f)deleted text end new text begin subdivision 17dnew text end , authorized under
section 144A.071 or 144A.073 after July 1, 1999, or any building project that is a
relocation, renovation, upgrading, or conversion completed on or after July 1, 2001, the
replacement-costs-new per bed limit shall be $74,280 per licensed bed in multiple-bed
rooms, $92,850 per licensed bed in semiprivate rooms with a fixed partition separating
the resident beds, and $111,420 per licensed bed in single rooms. Minnesota Rules, part
9549.0060, subpart 11, item C, subitem (2), does not apply. These amounts must be
adjusted annually as specified in subdivision 3f, paragraph (a), beginning January 1, 2000.

ARTICLE 5

HEALTH CARE

Section 1.

Minnesota Statutes 2006, section 256B.0625, subdivision 1a, is amended to
read:


Subd. 1a.

Services provided in a hospital emergency room.

Medical assistance
deleted text begin does not cover visits to a hospital emergency room that are not for emergency and
emergency poststabilization care or urgent care, and does not pay for any services
provided in a hospital emergency room that are not for emergency and emergency
poststabilization care or urgent caredeleted text end new text begin covers the facility component of a nonemergency
visit to the hospital emergency room at the payment level of the appropriate outpatient
clinic facility componentnew text end .

Sec. 2.

Minnesota Statutes 2006, section 256B.0625, subdivision 13c, is amended to
read:


Subd. 13c.

Formulary committee.

The commissioner, after receiving
recommendations from professional medical associations and professional pharmacy
associations, and consumer groups shall designate a Formulary Committee to carry
out duties as described in subdivisions 13 to 13g. The Formulary Committee shall be
comprised of four licensed physicians actively engaged in the practice of medicine in
Minnesota one of whom must be actively engaged in the treatment of persons with mental
illness; at least three licensed pharmacists actively engaged in the practice of pharmacy
in Minnesota; and one consumer representative; the remainder to be made up of health
care professionals who are licensed in their field and have recognized knowledge in the
clinically appropriate prescribing, dispensing, and monitoring of covered outpatient drugs.
Members of the Formulary Committee shall not be employed by the Department of
Human Services, but the committee shall be staffed by an employee of the department
who shall serve as an ex officio, nonvoting member of the deleted text begin boarddeleted text end new text begin committeenew text end . The
department's medical director shall also serve as an ex officio, nonvoting member for the
committee. Committee members shall serve three-year terms and may be reappointed
by the commissioner. The Formulary Committee shall meet at least quarterly. The
commissioner may require more frequent Formulary Committee meetings as needed. An
honorarium of $100 per meeting and reimbursement for mileage shall be paid to each
committee member in attendance.

Sec. 3.

Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:


Subd. 4.

General assistance medical care; services.

(a)(i) For a person who is
eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
care covers, except as provided in paragraph (c):

(1) inpatient hospital services;

(2) outpatient hospital services;

(3) services provided by Medicare certified rehabilitation agencies;

(4) prescription drugs and other products recommended through the process
established in section 256B.0625, subdivision 13;

(5) equipment necessary to administer insulin and diagnostic supplies and equipment
for diabetics to monitor blood sugar level;

(6) eyeglasses and eye examinations provided by a physician or optometrist;

(7) hearing aids;

(8) prosthetic devices;

(9) laboratory and X-ray services;

(10) physician's services;

(11) medical transportation except special transportation;

(12) chiropractic services as covered under the medical assistance program;

(13) podiatric services;

(14) dental services as covered under the medical assistance program;

(15) outpatient services provided by a mental health center or clinic that is under
contract with the county board and is established under section 245.62;

(16) day treatment services for mental illness provided under contract with the
county board;

(17) prescribed medications for persons who have been diagnosed as mentally ill as
necessary to prevent more restrictive institutionalization;

(18) psychological services, medical supplies and equipment, and Medicare
premiums, coinsurance and deductible payments;

(19) medical equipment not specifically listed in this paragraph when the use of
the equipment will prevent the need for costlier services that are reimbursable under
this subdivision;

(20) services performed by a certified pediatric nurse practitioner, a certified family
nurse practitioner, a certified adult nurse practitioner, a certified obstetric/gynecological
nurse practitioner, a certified neonatal nurse practitioner, or a certified geriatric nurse
practitioner in independent practice, if (1) the service is otherwise covered under this
chapter as a physician service, (2) the service provided on an inpatient basis is not included
as part of the cost for inpatient services included in the operating payment rate, and (3) the
service is within the scope of practice of the nurse practitioner's license as a registered
nurse, as defined in section 148.171;

(21) services of a certified public health nurse or a registered nurse practicing in
a public health nursing clinic that is a department of, or that operates under the direct
authority of, a unit of government, if the service is within the scope of practice of the
public health nurse's license as a registered nurse, as defined in section 148.171;

(22) telemedicine consultations, to the extent they are covered under section
256B.0625, subdivision 3b; and

(23) mental health telemedicine and psychiatric consultation as covered under
section 256B.0625, subdivisions 46 and 48.

(ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
to inpatient hospital services, including physician services provided during the inpatient
hospital stay. A $1,000 deductible is required for each inpatient hospitalization.

(b) Effective August 1, 2005, sex reassignment surgery is not covered under this
subdivision.

(c) In order to contain costs, the commissioner of human services shall select
vendors of medical care who can provide the most economical care consistent with high
medical standards and shall where possible contract with organizations on a prepaid
capitation basis to provide these services. The commissioner shall consider proposals by
counties and vendors for prepaid health plans, competitive bidding programs, block grants,
or other vendor payment mechanisms designed to provide services in an economical
manner or to control utilization, with safeguards to ensure that necessary services are
provided. Before implementing prepaid programs in counties with a county operated or
affiliated public teaching hospital or a hospital or clinic operated by the University of
Minnesota, the commissioner shall consider the risks the prepaid program creates for the
hospital and allow the county or hospital the opportunity to participate in the program in a
manner that reflects the risk of adverse selection and the nature of the patients served by
the hospital, provided the terms of participation in the program are competitive with the
terms of other participants considering the nature of the population served. Payment for
services provided pursuant to this subdivision shall be as provided to medical assistance
vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
payments made during fiscal year 1990 and later years, the commissioner shall consult
with an independent actuary in establishing prepayment rates, but shall retain final control
over the rate methodology.

new text begin (d) Effective January 1, 2008, drug coverage under general assistance medical care
is limited to prescription drugs that:
 new text end

new text begin (i) are covered under the medical assistance program as described in section
256B.0625, subdivisions 13 and 13d; and
 new text end

new text begin (ii) are provided by manufacturers that have fully executed general assistance
medical care rebate agreements with the commissioner and comply with the agreements.
Prescription drug coverage under general assistance medical care must conform to
coverage under the medical assistance program according to section 256B.0625,
subdivisions 13 to 13g.
 new text end

deleted text begin (d)deleted text end new text begin (e)new text end Recipients eligible under subdivision 3, paragraph (a), shall pay the following
co-payments for services provided on or after October 1, 2003:

(1) $25 for eyeglasses;

(2) $25 for nonemergency visits to a hospital-based emergency room;

(3) $3 per brand-name drug prescription and $1 per generic drug prescription,
subject to a $12 per month maximum for prescription drug co-payments. No co-payments
shall apply to antipsychotic drugs when used for the treatment of mental illness; and

(4) 50 percent coinsurance on restorative dental services.

deleted text begin (e)deleted text end new text begin (f)new text end Co-payments shall be limited to one per day per provider for nonpreventive
visits, eyeglasses, and nonemergency visits to a hospital-based emergency room.
Recipients of general assistance medical care are responsible for all co-payments in this
subdivision. The general assistance medical care reimbursement to the provider shall be
reduced by the amount of the co-payment, except that reimbursement for prescription
drugs shall not be reduced once a recipient has reached the $12 per month maximum for
prescription drug co-payments. The provider collects the co-payment from the recipient.
Providers may not deny services to recipients who are unable to pay the co-payment,
except as provided in paragraph (f).

deleted text begin (f)deleted text end new text begin (g)new text end If it is the routine business practice of a provider to refuse service to an
individual with uncollected debt, the provider may include uncollected co-payments
under this section. A provider must give advance notice to a recipient with uncollected
debt before services can be denied.

deleted text begin (g)deleted text end new text begin (h)new text end Any county may, from its own resources, provide medical payments for
which state payments are not made.

deleted text begin (h)deleted text end new text begin (i)new text end Chemical dependency services that are reimbursed under chapter 254B must
not be reimbursed under general assistance medical care.

deleted text begin (i)deleted text end new text begin (j)new text end The maximum payment for new vendors enrolled in the general assistance
medical care program after the base year shall be determined from the average usual and
customary charge of the same vendor type enrolled in the base year.

deleted text begin (j)deleted text end new text begin (k)new text end The conditions of payment for services under this subdivision are the same
as the conditions specified in rules adopted under chapter 256B governing the medical
assistance program, unless otherwise provided by statute or rule.

deleted text begin (k)deleted text end new text begin (l)new text end Inpatient and outpatient payments shall be reduced by five percent, effective
July 1, 2003. This reduction is in addition to the five percent reduction effective July 1,
2003, and incorporated by reference in paragraph (i).

deleted text begin (l)deleted text end new text begin (m)new text end Payments for all other health services except inpatient, outpatient, and
pharmacy services shall be reduced by five percent, effective July 1, 2003.

deleted text begin (m)deleted text end new text begin (n)new text end Payments to managed care plans shall be reduced by five percent for services
provided on or after October 1, 2003.

deleted text begin (n)deleted text end new text begin (o)new text end A hospital receiving a reduced payment as a result of this section may apply
the unpaid balance toward satisfaction of the hospital's bad debts.

deleted text begin (o)deleted text end new text begin (p)new text end Fee-for-service payments for nonpreventive visits shall be reduced by $3
for services provided on or after January 1, 2006. For purposes of this subdivision, a
visit means an episode of service which is required because of a recipient's symptoms,
diagnosis, or established illness, and which is delivered in an ambulatory setting by
a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
audiologist, optician, or optometrist.

deleted text begin (p)deleted text end new text begin (q)new text end Payments to managed care plans shall not be increased as a result of the
removal of the $3 nonpreventive visit co-payment effective January 1, 2006.

Sec. 4.

Minnesota Statutes 2006, section 256E.35, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Family asset account" means a savings account opened by a household
participating in the Minnesota family assets for independence initiative.

(c) "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section ;

(2) a federal community development credit union serving the seven-county
metropolitan area; or

(3) a women-oriented economic development agency serving the seven-county
metropolitan area.

(d) "Financial institution" means a bank, bank and trust, savings bank, savings
association, or credit union, the deposits of which are insured by the Federal Deposit
Insurance Corporation or the National Credit Union Administration.

(e) "Permissible use" means:

(1) postsecondary educational expenses at an accredited public postsecondary
institution including books, supplies, and equipment required for courses of instruction;

(2) acquisition costs of acquiring, constructing, or reconstructing a residence,
including any usual or reasonable settlement, financing, or other closing costs;

(3) business capitalization expenses for expenditures on capital, plant, equipment,
working capital, and inventory expenses of a legitimate business pursuant to a business
plan approved by the fiduciary organization; and

(4) acquisition costs of a principal residence within the meaning of section 1034 of
the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area
purchase price applicable to the residence determined according to section 143(e)(2) and
(3) of the Internal Revenue Code of 1986.

(f) "Household" means all individuals who share use of a dwelling unit as primary
quarters for living and eating separate from other individuals.

Sec. 5.

Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:


Subd. 5.

Co-payments and coinsurance.

(a) Except as provided in paragraphs (b)
and (c), the MinnesotaCare benefit plan shall include the following co-payments and
coinsurance requirements for all enrollees:

(1) ten percent of the paid charges for inpatient hospital services for adult enrollees,
subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and
$3,000 per family;

(2) $3 per prescription for adult enrollees;

(3) $25 for eyeglasses for adult enrollees;

(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an
episode of service which is required because of a recipient's symptoms, diagnosis, or
established illness, and which is delivered in an ambulatory setting by a physician or
physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
audiologist, optician, or optometrist; and

(5) $6 for nonemergency visits to a hospital-based emergency room.

(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of
children under the age of 21 in households with family income equal to or less than 175
percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to
parents and relative caretakers of children under the age of 21 in households with family
income greater than 175 percent of the federal poverty guidelines for inpatient hospital
admissions occurring on or after January 1, 2001.

(c) Paragraph (a)deleted text begin , clauses (1) to (4), dodeleted text end new text begin does new text end not apply to pregnant women and
children under the age of 21.

(d) Adult enrollees with family gross income that exceeds 175 percent of the
federal poverty guidelines and who are not pregnant shall be financially responsible for
the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient
hospital benefit limit.

(e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan,
or changes from one prepaid health plan to another during a calendar year, any charges
submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket
expenses incurred by the enrollee for inpatient services, that were submitted or incurred
prior to enrollment, or prior to the change in health plans, shall be disregarded.

Sec. 6.

Minnesota Statutes 2006, section 256L.04, subdivision 1, is amended to read:


Subdivision 1.

Families with children.

(a) Families with children with family
income equal to or less than 275 percent of the federal poverty guidelines for the
applicable family size shall be eligible for MinnesotaCare according to this section. All
other provisions of sections 256L.01 to 256L.18, including the insurance-related barriers
to enrollment under section 256L.07, shall apply unless otherwise specified.

(b) Parents who enroll in the MinnesotaCare program must also enroll their children,
if the children are eligible. Children may be enrolled separately without enrollment by
parents. However, if one parent in the household enrolls, both parents must enroll, unless
other insurance is available. If one child from a family is enrolled, all children must
be enrolled, unless other insurance is available. If one spouse in a household enrolls,
the other spouse in the household must also enroll, unless other insurance is available.
Families cannot choose to enroll only certain uninsured members.

(c) Beginning October 1, 2003, the dependent sibling definition no longer applies
to the MinnesotaCare program. These persons are no longer counted in the parental
household and may apply as a separate household.

(d) Beginning July 1, 2003, or upon federal approval, whichever is later, parents
are not eligible for MinnesotaCare if their gross income exceeds deleted text begin $50,000deleted text end new text begin $25,000 for the
six-month period of eligibilitynew text end .

Sec. 7.

Minnesota Statutes 2006, section 256L.04, subdivision 12, is amended to read:


Subd. 12.

Persons in detention.

Beginning January 1, 1999, an applicant residing
in a correctional or detention facility is not eligible for MinnesotaCare. An enrollee
residing in a correctional or detention facility is not eligible at renewal of eligibility under
section 256L.05, subdivision deleted text begin 3bdeleted text end new text begin 3anew text end .

ARTICLE 6

MISCELLANEOUS

Section 1.

Minnesota Statutes 2006, section 256J.30, subdivision 9, is amended to read:


Subd. 9.

Changes that must be reported.

A caregiver must report the changes or
anticipated changes specified in clauses (1) to (16) within ten days of the date they occur,
at the time of the periodic recertification of eligibility under section 256J.32, subdivision
6, or within eight calendar days of a reporting period as in subdivision 5 or 6, whichever
occurs first. A caregiver must report other changes at the time of the periodic recertification
of eligibility under section 256J.32, subdivision 6, or at the end of a reporting period under
subdivision 5 or 6, as applicable. A caregiver must make these reports in writing to the
county agency. When a county agency could have reduced or terminated assistance for
one or more payment months if a delay in reporting a change specified under clauses (1)
to (15) had not occurred, the county agency must determine whether a timely notice
under section 256J.31, subdivision 4, could have been issued on the day that the change
occurred. When a timely notice could have been issued, each month's overpayment
subsequent to that notice must be considered a client error overpayment under section
256J.38. Calculation of overpayments for late reporting under clause (16) is specified in
section 256J.09, subdivision 9. Changes in circumstances which must be reported within
ten days must also be reported on the MFIP household report form for the reporting period
in which those changes occurred. Within ten days, a caregiver must report:

(1) a change in initial employment;

(2) a change in initial receipt of unearned income;

(3) a recurring change in unearned income;

(4) a nonrecurring change of unearned income that exceeds $30;

(5) the receipt of a lump sum;

(6) an increase in assets that may cause the assistance unit to exceed asset limits;

(7) a change in the physical or mental status of an incapacitated member of the
assistance unit if the physical or mental status is the basis deleted text begin of exemption from an MFIP
employment services program under section 256J.56, or as the basisdeleted text end for reducing the
hourly participation requirements under section 256J.55, subdivision 1, or the type of
activities included in an employment plan under section 256J.521, subdivision 2;

(8) a change in employment status;

(9) information affecting an exception under section 256J.24, subdivision 9;

(10) the marriage or divorce of an assistance unit member;

(11) the death of a parent, minor child, or financially responsible person;

(12) a change in address or living quarters of the assistance unit;

(13) the sale, purchase, or other transfer of property;

(14) a change in school attendance of a caregiver under age 20 or an employed child;

(15) filing a lawsuit, a workers' compensation claim, or a monetary claim against a
third party; and

(16) a change in household composition, including births, returns to and departures
from the home of assistance unit members and financially responsible persons, or a change
in the custody of a minor child.

Sec. 2.

Minnesota Statutes 2006, section 256J.32, subdivision 4, is amended to read:


Subd. 4.

Factors to be verified.

The county agency shall verify the following
at application:

(1) identity of adults;

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

(3) relationship of a minor child to caregivers in the assistance unit;

(4) age, if necessary to determine MFIP eligibility;

(5) immigration status;

(6) Social Security number according to the requirements of section 256J.30,
subdivision 12;

(7) income;

(8) self-employment expenses used as a deduction;

(9) source and purpose of deposits and withdrawals from business accounts;

(10) spousal support and child support payments made to persons outside the
household;

(11) real property;

(12) vehicles;

(13) checking and savings accounts;

(14) savings certificates, savings bonds, stocks, and individual retirement accounts;

(15) pregnancy, if related to eligibility;

(16) inconsistent information, if related to eligibility;

(17) burial accounts;

(18) school attendance, if related to eligibility;

(19) residence;

(20) a claim of family violence if used as a basis to qualify for the family violence
waiver;

(21) disability if used deleted text begin as the basis for an exemption from employment and training
services requirements under section 256J.56 ordeleted text end as the basis for reducing the hourly
participation requirements under section 256J.55, subdivision 1, or the type of activity
included in an employment plan under section 256J.521, subdivision 2; and

(22) information needed to establish an exception under section 256J.24, subdivision
9.

Sec. 3.

Minnesota Statutes 2006, section 256J.42, subdivision 5, is amended to read:


Subd. 5.

Exemption for certain families.

(a) Any cash assistance received by an
assistance unit does not count toward the 60-month limit on assistance during a month in
which the caregiver is age 60 or olderdeleted text begin , including months during which the caregiver was
exempt under section 256J.56, paragraph (a), clause (1)deleted text end .

(b) From July 1, 1997, until the date MFIP is operative in the caregiver's county of
financial responsibility, any cash assistance received by a caregiver who is complying with
Minnesota Statutes 1996, section 256.73, subdivision 5a, and Minnesota Statutes 1998,
section 256.736, if applicable, does not count toward the 60-month limit on assistance.
Thereafter, any cash assistance received by a minor caregiver who is complying with
the requirements of sections 256J.14 and 256J.54, if applicable, does not count towards
the 60-month limit on assistance.

(c) Any diversionary assistance or emergency assistance received prior to July 1,
2003, does not count toward the 60-month limit.

(d) Any cash assistance received by an 18- or 19-year-old caregiver who is
complying with an employment plan that includes an education option under section
256J.54 does not count toward the 60-month limit.

(e) Payments provided to meet short-term emergency needs under section 256J.626
and diversionary work program benefits provided under section 256J.95 do not count
toward the 60-month time limit.

Sec. 4.

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


Subd. 6.

Case review.

(a) Within 180 days, but not less than 60 days, before the end
of the participant's 60th month on assistance, the county agency or job counselor must
review the participant's case to determine if the employment plan is still appropriatedeleted text begin or if
the participant is exempt under section 256J.56 from the employment and training services
componentdeleted text end , and attempt to meet with the participant face-to-face.

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

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

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

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

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

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

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

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

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

Sec. 5.

Minnesota Statutes 2006, section 256J.425, subdivision 6, is amended to read:


Subd. 6.

Sanctions for extended cases.

(a) If one or both participants in an
assistance unit receiving assistance under subdivision 3 or 4 are not in compliance with
the employment and training service requirements in sections 256J.521 to 256J.57,
the sanctions under this subdivision apply. For a first occurrence of noncompliance,
an assistance unit must be sanctioned under section 256J.46, subdivision 1, paragraph
(c), clause (1). For a second or third occurrence of noncompliance, the assistance unit
must be sanctioned under section 256J.46, subdivision 1, paragraph (c), clause (2). For a
fourth occurrence of noncompliance, the assistance unit is disqualified from MFIP. If a
participant is determined to be out of compliance, the participant may claim a good cause
exception under section 256J.57deleted text begin , however, the participant may not claim an exemption
under section 256J.56deleted text end .

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

(c) When a parent in an extended two-parent assistance unit who has not used 60
months of assistance is out of compliance with the employment and training service
requirements in sections 256J.521 to 256J.57, sanctions must be applied as specified in
clauses (1) and (2).

(1) If the assistance unit is receiving assistance under subdivision 3 or 4, the
assistance unit is subject to the sanction policy in this subdivision.

(2) If the assistance unit is receiving assistance under subdivision 2, the assistance
unit is subject to the sanction policy in section 256J.46.

(d) If a two-parent assistance unit is extended under subdivision 3 or 4, and a
parent who has not reached the 60-month time limit is out of compliance with the
employment and training services requirements in sections 256J.521 to 256J.57 when the
case is extended, the sanction in the 61st month is considered the first sanction for the
purposes of applying the sanctions in this subdivision, except that the sanction amount
shall be 30 percent.

Sec. 6.

Minnesota Statutes 2006, section 256J.46, subdivision 1, is amended to read:


Subdivision 1.

Participants not complying with program requirements.

(a)
A participant who fails without good cause under section 256J.57 to comply with the
requirements of this chapter, and who is not subject to a sanction under subdivision 2,
shall be subject to a sanction as provided in this subdivision. Prior to the imposition of
a sanction, a county agency shall provide a notice of intent to sanction under section
256J.57, subdivision 2, and, when applicable, a notice of adverse action as provided
in section 256J.31.

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

(c) Sanctions for noncompliance shall be imposed as follows:

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

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

(d) For a seventh occurrence of noncompliance by a participant in an assistance
unit, or when the participants in a two-parent assistance unit have a total of seven
occurrences of noncompliance, the county agency shall close the MFIP assistance unit's
financial assistance case, both the cash and food portions, and redetermine the family's
continued eligibility for food support payments. The MFIP case must remain closed for a
minimum of one full month. Before the case is closed, the county agency must review
the participant's case to determine if the employment plan is still appropriate and attempt
to meet with the participant face-to-face. The participant may bring an advocate to the
face-to-face meeting. If a face-to-face meeting is not conducted, the county agency must
send the participant a written notice that includes the information required under clause (1).

(1) During the face-to-face meeting, the county agency must:

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

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

(iii) determine whether deleted text begin the participant qualifies for an exemption under section
256J.56 ordeleted text end the work activities in the employment plan are appropriate based on the criteria
in section 256J.521, subdivision 2 or 3;

(iv) determine whether the participant qualifies for the family violence waiver;

(v) inform the participant of the participant's sanction status and explain the
consequences of continuing noncompliance;

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

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

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

(3) The grant must be restored to the full amount for which the assistance unit is
eligible retroactively to the first day of the month in which the participant was found to
lack preemployment activities or to qualify for deleted text begin an exemption under section 256J.56,deleted text end a
family violence waiver, or for a good cause exemption under section 256.741, subdivision
10, or 256J.57.

(e) For the purpose of applying sanctions under this section, only occurrences of
noncompliance that occur after July 1, 2003, shall be considered. If the participant is in
30 percent sanction in the month this section takes effect, that month counts as the first
occurrence for purposes of applying the sanctions under this section, but the sanction
shall remain at 30 percent for that month.

(f) An assistance unit whose case is closed under paragraph (d) or (g), may
reapply for MFIP and shall be eligible if the participant complies with MFIP program
requirements and demonstrates compliance for up to one month. No assistance shall be
paid during this period.

(g) An assistance unit whose case has been closed for noncompliance, that reapplies
under paragraph (f), is subject to sanction under paragraph (c), clause (2), for a first
occurrence of noncompliance. Any subsequent occurrence of noncompliance shall result
in case closure under paragraph (d).

Sec. 7.

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


Subdivision 1.

Employment and training services component of MFIP.

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

(b) A county must provide employment and training services under sections
256J.515 to 256J.74 within 30 days after the caregiver is determined eligible for MFIP, or
within ten days when the caregiver participated in the diversionary work program under
section 256J.95 within the past 12 months.

Sec. 8.

Minnesota Statutes 2006, section 256J.54, subdivision 2, is amended to read:


Subd. 2.

Responsibility for assessment and employment plan.

For caregivers
who are under age 18 without a high school diploma or its equivalent, the assessment
under subdivision 1 and the employment plan under subdivision 3 must be completed
by the social services agency under section 257.33. For caregivers who are age 18 or
19 without a high school diploma or its equivalent who choose to have an employment
plan with an education option under subdivision 3, the assessment under subdivision 1
and the employment plan under subdivision 3 must be completed by the job counselor
or, at county option, by the social services agency under section 257.33. Upon reaching
age 18 or 19 a caregiver who received social services under section 257.33 and is without
a high school diploma or its equivalent has the option to choose whether to continue
receiving services under the caregiver's plan from the social services agency or to utilize
an MFIP employment and training service provider. The social services agency or the job
counselor shall consult with deleted text begin representatives of educational agencies that are required to
assist in developing educational plans under section 124D.331.deleted text end new text begin the participant's school in
developing the educational plan.
new text end

Sec. 9.

Minnesota Statutes 2006, section 256J.54, subdivision 5, is amended to read:


Subd. 5.

School attendance required.

(a) deleted text begin Notwithstanding the provisions of
section 256J.56,deleted text end Minor parents, or 18- or 19-year-old parents without a high school
diploma or its equivalentnew text begin ,new text end who deleted text begin choosesdeleted text end new text begin choosenew text end an employment plan with an education
option must attend school unless:

(1) transportation services needed to enable the caregiver to attend school are not
available;

(2) appropriate child care services needed to enable the caregiver to attend school
are not available;

(3) the caregiver is ill or incapacitated seriously enough to prevent attendance at
school; or

(4) the caregiver is needed in the home because of the illness or incapacity of
another member of the household. This includes a caregiver of a child who is younger
than six weeks of age.

(b) The caregiver must be enrolled in a secondary school and meeting the school's
attendance requirements. The county, social service agency, or job counselor must verify
at least once per quarter that the caregiver is meeting the school's attendance requirements.
An enrolled caregiver is considered to be meeting the attendance requirements when the
school is not in regular session, including during holiday and summer breaks.

Sec. 10.

Minnesota Statutes 2006, section 256J.55, subdivision 1, is amended to read:


Subdivision 1.

Participation requirements.

(a) All caregivers must participate
in employment services under sections 256J.515 to 256J.57 concurrent with receipt of
MFIP assistance.

deleted text begin (b) Until July 1, 2004, participants who meet the requirements of section 256J.56 are
exempt from participation requirements.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end Participants under paragraph (a) must develop and comply with an
employment plan under section 256J.521 or section 256J.54 in the case of a participant
under the age of 20 who has not obtained a high school diploma or its equivalent.

deleted text begin (d)deleted text end new text begin (c)new text end With the exception of participants under the age of 20 who must meet
the education requirements of section 256J.54, all participants must meet the hourly
participation requirements of TANF or the hourly requirements listed in clauses (1) to
(3), whichever is higher.

(1) In single-parent families with no children under six years of age, the job
counselor and the caregiver must develop an employment plan that includes 30 to 35
hours per week of work activities.

(2) In single-parent families with a child under six years of age, the job counselor
and the caregiver must develop an employment plan that includes 20 to 35 hours per
week of work activities.

(3) In two-parent families, the job counselor and the caregivers must develop
employment plans which result in a combined total of at least 55 hours per week of work
activities.

deleted text begin (e)deleted text end new text begin (d)new text end Failure to participate in employment services, including the requirement to
develop and comply with an employment plan, including hourly requirements, without
good cause under section 256J.57, shall result in the imposition of a sanction under section
256J.46.

Sec. 11.

Minnesota Statutes 2006, section 256J.561, subdivision 2, is amended to read:


Subd. 2.

Participation requirements.

(a) All MFIP caregiversnew text begin whose applications
were received July 1, 2004, or after, are immediately subject to the requirements of this
subdivision. All MFIP caregiversnew text end , except caregivers who meet the criteria in subdivision 3,
must participate in employment services. Except as specified in paragraphs (b) to (d), the
employment plan must meet the requirements of section 256J.521, subdivision 2, contain
allowable work activities, as defined in section 256J.49, subdivision 13, and, include at a
minimum, the number of participation hours required under section 256J.55, subdivision 1.

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

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

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

(1) a participant who is age 60 or older;

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

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

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

Sec. 12.

Minnesota Statutes 2006, section 256J.95, subdivision 11, is amended to read:


Subd. 11.

Universal participation required.

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

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

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

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

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

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

Sec. 13.

Laws 2005, chapter 98, article 3, section 25, is amended to read:


Sec. 25. REPEALER.

Minnesota Statutes 2004, sections 245.713, deleted text begin subdivisions 2 anddeleted text end new text begin subdivisionnew text end 4;
245.716; and 626.5551, subdivision 4, are repealed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from August 1, 2005.
 new text end

Sec. 14. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall change the terms in column A to the terms in column B
wherever they appear in Minnesota Statutes,
 new text end

new text begin Column A
 new text end 		new text begin Column B
 new text end
new text begin "Office of Ombudsman
for Older Minnesotans"
and "Office of the
Ombudsman for Older
Minnesotans"
 new text end 		new text begin "Office of Ombudsman
for Long-Term Care"
 new text end
new text begin "ombudsman for older
Minnesotans"
 new text end 		new text begin "ombudsman for
long-term care"
 new text end

Sec. 15. new text begin MINNESOTA RULES.
new text end

new text begin The Department of Administration shall publish adopted rules in the State Register
making the terminology changes specified in section 14 in Minnesota Rules. Upon
publication in the State Register, the terminology changes for Minnesota Rules are
adopted without further administrative action.
 new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2006, sections 252.21; 252.22; 252.23; 252.24; 252.25;
252.261; 252.275, subdivision 5; 254A.02, subdivisions 7, 9, 12, 14, 15, and 16;
254A.085; 254A.086; 254A.12; 254A.14; 254A.15; 254A.16, subdivision 5; 254A.175;
254A.18; 256B.0913, subdivisions 5b, 5c, 5d, 5e, 5f, 5g, and 5h; 256J.561, subdivision 1;
256J.62, subdivision 9; and 256J.65, new text end new text begin are repealed.
 new text end

new text begin (b) new text end new text begin Minnesota Rules, part 9503.0035, subpart 2, new text end new text begin is repealed.
 new text end